Begun and held at the City of Washington on Tuesday, the third day of January, two thousand and six

H. R. 5122

AN ACT

To authorize appropriations for fiscal year 2007 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes.

1.

Short title; findings

(a)

Short title

This Act may be cited as the John Warner National Defense Authorization Act for Fiscal Year 2007.

(b)

Findings

Congress makes the following findings:

(1)

Senator John Warner of Virginia was elected a member of the United States Senate on November 7, 1978, for a full term beginning on January 3, 1979. He was subsequently appointed by the Governor of Virginia to fill a vacancy on January 2, 1979, and has served continuously since that date. He was appointed a member of the Committee on Armed Services in January 1979, and has served continuously on the Committee since that date, a period of nearly 28 years. Senator Warner’s service on the Committee represents nearly half of its existence since it was established after World War II.

(2)

Senator Warner came to the Senate and the Committee on Armed Services after a distinguished record of service to the Nation, including combat service in the Armed Forces and high civilian office.

(3)

Senator Warner enlisted in the United States Navy upon graduation from high school in 1945, and served until the summer of 1946, when he was discharged as a Petty Officer 3rd Class. He then attended Washington and Lee University on the G.I. Bill. He graduated in 1949 and entered the University of Virginia Law School.

(4)

Upon the outbreak of the Korean War in 1950, Senator Warner volunteered for active duty, interrupting his education to accept a commission in the United States Marine Corps. He served in combat in Korea as a ground officer in the First Marine Air Wing. Following his active service, he remained in the Marine Corps Reserve for several years, attaining the rank of captain.

(5)

Senator Warner resumed his legal education upon returning from the Korean War and graduated from the University of Virginia Law School in 1953. He was selected by the late Chief Judge E. Barrett Prettyman of the United States Court of Appeals for the District of Columbia Circuit as his law clerk. After his service to Judge Prettyman, Senator Warner became an Assistant United States Attorney in the District of Columbia, and later entered private law practice.

(6)

In 1969, the Senate gave its advice and consent to the appointment of Senator Warner as Under Secretary of the Navy. He served in this position until 1972, when he was confirmed and appointed as the 61st Secretary of the Navy since the office was established in 1798. As Secretary, Senator Warner was the principal United States negotiator and signatory of the Incidents at Sea Executive Agreement with the Soviet Union, which was signed in 1972 and remains in effect today. It has served as the model for similar agreements between states covering the operation of naval ships and aircraft in international sea lanes throughout the world.

(7)

Senator Warner left the Department of the Navy in 1974. His next public service was as Administrator of the American Revolution Bicentennial Commission. In this capacity, he coordinated the celebration of the Nation’s founding, directing the Federal role in all 50 States and in over 20 foreign nations.

(8)

Senator Warner has served as chairman of the Committee on Armed Services of the United States Senate from 1999 to 2001, and again since January 2003. He served as ranking minority member of the committee from 1987 to 1993, and again from 2001 to 2003. Senator Warner concludes his service as chairman at the end of the 109th Congress, but will remain a member of the committee.

(9)

This Act is the twenty-eighth annual authorization Act for the Department of Defense for which Senator Warner has taken a major responsibility as a member of the Committee on Armed Services of the United States Senate, and the fourteenth for which he has exercised a leadership role as chairman or ranking minority member of the committee.

(10)

Senator Warner, as seaman, Marine officer, Under Secretary and Secretary of the Navy, and member, ranking minority member, and chairman of the Committee on Armed Services of the United States Senate, has made unique and lasting contributions to the national security of the United States.

(11)

It is altogether fitting and proper that this Act, the last annual authorization Act for the national defense managed by Senator Warner in and for the United States Senate as chairman of the Committee on Armed Services, be named in his honor, as provided in subsection (a).

2.

Organization of Act into divisions; table of contents

(a)

Divisions

This Act is organized into three divisions as follows:

(1)

Division A—Department of Defense Authorizations.

(2)

Division B—Military Construction Authorizations.

(3)

Division C—Department of Energy National Security Authorizations and Other Authorizations.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; findings.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees.

Division A—Department of Defense Authorizations

Title I—Procurement

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Subtitle B—Army Programs

Sec. 111. Sense of Congress on future multiyear procurement authority for Family of Medium Tactical Vehicles.

Sec. 661. Treatment of price surcharges of certain merchandise sold at commissary stores.

Sec. 662. Limitations on lease of non-excess Department of Defense property for protection of morale, welfare, and recreation activities and revenue.

Sec. 663. Report on cost effectiveness of purchasing commercial insurance for commissary and exchange facilities and facilities of other morale, welfare, and recreation programs and nonappropriated fund instrumentalities.

Sec. 720. Report on distribution of hemostatic agents for use in the field.

Sec. 721. Longitudinal study on traumatic brain injury incurred by members of the Armed Forces in Operation Iraqi Freedom and Operation Enduring Freedom.

Subtitle C—Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and Medicare program.

Sec. 732. Requirements for support of military treatment facilities by civilian contractors under TRICARE.

Sec. 733. Standards and tracking of access to health care services for wounded, injured, or ill servicemembers returning to the United States from a combat zone.

Sec. 734. Disease and chronic care management.

Sec. 735. Additional elements of assessment of Department of Defense task force on mental health relating to mental health of members who were deployed in Operation Iraqi Freedom and Operation Enduring Freedom.

Sec. 736. Additional authorized option periods for extension of current contracts under TRICARE.

Sec. 737. Military vaccination matters.

Sec. 738. Enhanced mental health screening and services for members of the Armed Forces.

Subtitle D—Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post traumatic stress disorder and other mental health conditions.

Sec. 742. Requirement to certify and report on conversion of military medical and dental positions to civilian medical and dental positions.

Sec. 743. Three-year extension of joint incentives program on sharing of health care resources by the Department of Defense and Department of Veterans Affairs.

Sec. 744. Training curricula for family caregivers on care and assistance for members and former members of the Armed Forces with traumatic brain injury.

Sec. 745. Recognition of Representative Lane Evans upon his retirement from the House of Representatives.

Sec. 832. Limitation on contracts for the acquisition of certain services.

Sec. 833. Use of Federal supply schedules by State and local governments for goods and services for recovery from natural disasters, terrorism, or nuclear, biological, chemical, or radiological attack.

Sec. 834. Waivers to extend task order contracts for advisory and assistance services.

Subtitle D—United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense industrial base capabilities and acquisitions of articles, materials, and supplies manufactured outside the United States.

Sec. 842. Protection of strategic materials critical to national security.

Sec. 843. Strategic Materials Protection Board.

Subtitle E—Other Matters

Sec. 851. Report on former Department of Defense officials employed by contractors of the Department of Defense.

Sec. 1035. Presidential report on improving interagency support for United States 21st century national security missions and interagency operations in support of stability, security, transition, and reconstruction operations.

Sec. 1202. Temporary authority to use acquisition and cross-servicing agreements to lend certain military equipment to foreign forces in Iraq and Afghanistan for personnel protection and survivability.

Sec. 1203. Recodification and revision to law relating to Department of Defense humanitarian demining assistance.

135. Limitation on retirement of KC-135E aircraft during fiscal year 2007.

136. Limitation on retirement of F-117A aircraft during fiscal year 2007.

137. Limitation on retirement of C–130E tactical airlift aircraft.

138. Procurement of Joint Primary Aircraft Training System aircraft after fiscal year 2006.

139. Minuteman III intercontinental ballistic missile modernization.

Subtitle E—Joint and Multiservice Matters

141. Clarification of limitation on initiation of new unmanned aerial vehicle systems.

A

Authorization of Appropriations

101.

Army

Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Army as follows:

(1)

For aircraft, $3,451,429,000.

(2)

For missiles, $1,328,859,000.

(3)

For weapons and tracked combat vehicles, $2,278,604,000.

(4)

For ammunition, $1,984,325,000.

(5)

For other procurement, $7,687,502,000.

(6)

For National Guard Equipment, $318,000,000.

102.

Navy and Marine Corps

(a)

Navy

Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Navy as follows:

(1)

For aircraft, $10,734,071,000.

(2)

For weapons, including missiles and torpedoes, $2,549,020,000.

(3)

For shipbuilding and conversion, $11,021,553,000.

(4)

For other procurement, $4,995,033,000.

(b)

Marine Corps

Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Marine Corps in the amount of $1,253,813,000.

(c)

Navy and Marine Corps Ammunition

Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement of ammunition for the Navy and the Marine Corps in the amount of $797,943,000.

103.

Air Force

Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Air Force as follows:

(1)

For aircraft, $12,179,154,000.

(2)

For ammunition, $1,072,749,000.

(3)

For missiles, $4,171,886,000.

(4)

For other procurement, $15,443,286,000.

104.

Defense-wide activities

Funds are hereby authorized to be appropriated for fiscal year 2007 for Defense-wide procurement in the amount of $2,886,361,000.

B

Army Programs

111.

Sense of Congress on future multiyear procurement authority for Family of Medium Tactical Vehicles

(a)

Future acquisition strategy

It is the sense of Congress that, as part of the Army’s planning, programming, and budgeting process for fiscal year 2008, the Secretary of the Army should request from Congress authority by law to enter into a multiyear procurement (MYP) contract for the Family of Medium Tactical Vehicles (FMTV) program and that, in support of such request, the Secretary should submit to Congress the necessary justification materials required by law to justify a multiyear procurement (MYP) contract, including the material required by section 2306b of title 10, United States Code.

(b)

Incorporation of product improvements

It is the sense of Congress that any proposal by the Secretary of the Army for multiyear procurement authority for procurement of vehicles under the Family of Medium Tactical Vehicles program should provide for incorporation into the vehicles to be procured through such authority of improvements from—

(1)

lessons learned from operations involving the Global War on Terrorism; and

(2)

product improvement programs carried out for the Family of Medium Tactical Vehicles program in the areas of force protection, survivability, reliability, network communications, situational awareness, and safety.

Subject to subsection (c), the Secretary of the Army, acting as executive agent for the Department of the Navy, may enter into a multiyear contract for the procurement of MH-60R helicopters.

(b)

MH-60R helicopter mission equipment

Subject to subsection (c), the Secretary of the Navy may enter into a multiyear contract for the procurement of MH-60R helicopter mission equipment for the helicopters covered by a multiyear contract under subsection (a).

(c)

Contract requirements

Any multiyear contract under this section—

(1)

shall be entered into in accordance with section 2306b of title 10, United States Code, and shall commence with the fiscal year 2007 program year; and

(2)

shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose.

113.

Funding profile for Modular Force Initiative of the Army

The Secretary of the Army shall set forth in the budget presentation materials of the Army submitted to Congress in support of the President’s budget for any fiscal year after fiscal year 2007, and in other relevant materials submitted to Congress with respect to the budget of the Army for any such fiscal year, all amounts for procurement for the M1A2 Abrams tank System Enhancement Program (SEP) and for the Bradley A3 fighting vehicle as elements within the amounts requested for the Modular Force Initiative of the Army, in accordance with the report of the Army titled The Army Modular Force Initiative, submitted to Congress in March 2006.

114.

Bridge to Future Networks program

(a)

Limitation on fiscal year 2007 amount

Of the amount authorized to be appropriated for the Army for fiscal year 2007 for Other Procurement, Army, that is available for the program of the Army designated as the Bridge to Future Networks, not more than 75 percent shall be made available for obligation until the Secretary of the Army submits to the congressional defense committees a report on that program that includes the matters specified in subsection (b).

(b)

Matters to be included

The report under subsection (a) shall include the following:

(1)

An analysis of how the systems specified in subsection (c) will fit together, including, for each such system, an analysis of whether there are opportunities to leverage technologies and equipment from that system as part of the development of the other systems.

(2)

A description of the extent to which components of the systems specified in subsection (c) could be used together as elements of a single tactical network.

(3)

A description of the strategy of the Army for completing the systems engineering necessary to ensure the end-to-end interoperability of a single tactical network referred to in paragraph (2).

(4)

An assessment of the costs of acquiring each of the systems specified in subsection (c).

(5)

An assessment of the technical compatibility of the systems specified in subsection (c).

(6)

A description of the plans of the Army for fielding the systems specified in subsection (c).

(7)

A description of the plans of the Army for sustaining the Joint Network Node through fiscal year 2020 and an assessment of the need to upgrade its technologies and equipment.

(8)

A description of the plans of the Army for the insertion of new technology into the Joint Network Node.

(c)

Specified systems

The systems referred to in subsection (b) are as follows:

(1)

The Joint Network Node (JNN) element of the Bridge to Future Networks program.

(2)

The Warfighter Information Network-Tactical (WIN-T) program.

(3)

The Mounted Battle Command On-the-Move (MBCOTM) system.

115.

Comptroller General report on the contract for the Future Combat Systems program

(a)

Report required

Not later than March 15, 2007, the Comptroller General of the United States shall submit to the congressional defense committees a report on the participation and activities of the lead systems integrator in the Future Combat Systems (FCS) program under the contract of the Army for the Future Combat Systems.

(b)

Elements

The report required by subsection (a) shall include the following:

(1)

A description of the responsibilities of the lead systems integrator in managing the Future Combat Systems program under the contract for the Future Combat Systems, and an assessment of the manner in which such responsibilities differ from the typical responsibilities of a lead systems integrator under acquisition contracts of the Department of Defense.

(2)

A description and assessment of the responsibilities of the Army in managing the Future Combat Systems program, including oversight of the activities of the lead systems integrator and the decisions made by the lead systems integrator.

(3)

An assessment of the manner in which the Army—

(A)

ensures that the lead systems integrator meets goals for the Future Combat Systems in a timely manner; and

(B)

evaluates the extent to which such goals are met.

(4)

An identification of the mechanisms in place to ensure the protection of the interests of the United States in the Future Combat Systems program.

(5)

An identification of the mechanisms in place to mitigate organizational conflicts of interest with respect to competition on Future Combat Systems technologies and equipment under subcontracts under the Future Combat Systems program.

116.

Priority for allocation of replacement equipment to operational units based on combat mission deployment schedule

The Secretary of Defense shall ensure that priority for the distribution of new and combat-serviceable replacement equipment acquired using funds authorized to be appropriated by this title (together with associated support and test equipment) is given to operational units (regardless of component) based on combat mission deployment schedule.

C

Navy Programs

121.

CVN–21 class aircraft carrier procurement

(a)

Contract authority for construction

In the fiscal year immediately following the last fiscal year of the contract for advance procurement for a CVN–21 class aircraft carrier designated CVN–78, CVN–79, or CVN–80, as applicable, the Secretary may enter into a contract for the construction of such aircraft carrier to be funded in the fiscal year of such contract for construction and the succeeding three fiscal years.

(b)

Condition for out-year contract payments

A contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract for any subsequent fiscal year is subject to the availability of appropriations for that purpose for such subsequent fiscal year.

(c)

Repeal of superceded provision

Section 128 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3159) is repealed.

The total amount obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for the aircraft carrier designated as CVN–21 may not exceed $10,500,000,000 (as adjusted pursuant to subsection (b)).

(2)

Follow-on ships

The total amount obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for the construction of any ship that is constructed in the CVN–21 class of aircraft carriers after the lead ship of that class may not exceed $8,100,000,000 (as adjusted pursuant to subsection (b)).

(b)

Adjustment of limitation amount

The Secretary of the Navy may adjust the amount set forth in subsection (a) for any ship constructed in the CVN–21 class of aircraft carriers by the following:

(1)

The amounts of increases or decreases in costs attributable to economic inflation after September 30, 2006.

(2)

The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2006.

(3)

The amounts of outfitting costs and post-delivery costs incurred for that ship.

(4)

The amounts of increases or decreases in costs of that ship that are attributable to insertion of new technology into that ship, as compared to the technology baseline as it was defined in the approved acquisition program baseline estimate of December 2005.

(5)

The amounts of increases or decreases to nonrecurring design and engineering cost attributable to achieving compliance with the cost limitation.

(6)

The amounts of increases or decreases to cost required to correct deficiencies that may affect the safety of the ship and personnel or otherwise preclude the ship from safe operations and crew certification.

(c)

Limitation on Technology Insertion Cost Adjustment

The Secretary of the Navy may use the authority under paragraph (4) of subsection (b) to adjust the amount set forth in subsection (a) for a ship referred to in that subsection with respect to insertion of new technology into that ship only if—

(1)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology would lower the life-cycle cost of the ship; or

(2)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology is required to meet an emerging threat and the Secretary of Defense certifies to those committees that such threat poses grave harm to national security.

(d)

Written notice of change in amount

(1)

Requirement

The Secretary of the Navy shall submit to the congressional defense committees each year, at the same time that the budget is submitted under section 1105(a) of title 31, United States Code, for the next fiscal year, written notice of any change in the amount set forth in subsection (a) during the preceding fiscal year that the Secretary has determined to be associated with a cost referred to in subsection (b).

(2)

Effective date

The requirement in paragraph (1) shall become effective with the budget request for the year of procurement of the first ship referred to in subsection (a).

123.

Modification of limitation on total cost of procurement of CVN–77 aircraft carrier

Section 122(f)(1) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 1650) is amended by striking $4,600,000,000 (such amount being the estimated cost for the procurement of the CVN–77 aircraft carrier in the March 1997 procurement plan) and inserting $6,057,000,000.

124.

Construction of first two vessels under the DDG–1000 Next-Generation Destroyer program

(a)

Availability of funds

Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding and Conversion, Navy, $2,568,000,000 may be available for the construction of the first two vessels under the DDG–1000 Next-Generation Destroyer program.

(b)

Contract authority

(1)

In general

The Secretary of the Navy may enter into a contract beginning with the fiscal year 2007 program year for procurement of each of the first two vessels under the DDG–1000 Next-Generation Destroyer program.

(2)

Limitation

Not more than one contract described in paragraph (1) may be awarded under that paragraph to a single shipyard.

(3)

Split funding authorized

Each contract under paragraph (1) shall contemplate funding for the procurement of a vessel under such contract using a combination of funds appropriated for fiscal year 2007 and funds appropriated for fiscal year 2008.

(4)

Condition on out-year contract payments

A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under such contract for any fiscal year after fiscal year 2007 is subject to the availability of appropriations for that purpose for such fiscal year.

(c)

Sense of Congress on funding for follow-on ships

It is the sense of Congress that there is sufficient benefit to authorizing the one-time exception provided in this section to the full funding policy in order to support the competitive procurement of the follow-on ships of the DDG–1000 Next-Generation Destroyer program. However, it is the expectation of Congress that the Secretary of the Navy will structure the DDG–1000 program so that each ship, after the first two ships, is procured using the method of full funding in a single year.

The total amount obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for procurement of any ship that is constructed under the LHA Replacement (LHA(R)) amphibious assault ship program may not exceed $2,813,600,000 (as adjusted pursuant to subsection (b)).

(b)

Adjustment of limitation amount

The Secretary of the Navy may adjust the amount set forth in subsection (a) for any ship constructed under the LHA Replacement amphibious assault ship program by the following:

(1)

The amounts of increases or decreases in costs attributable to economic inflation after September 30, 2006.

(2)

The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2006.

(3)

The amounts of outfitting costs and post-delivery costs incurred for that ship.

(4)

The amounts of increases or decreases in costs of that ship that are attributable to insertion of new technology into that ship, as compared to the technology baseline as it was defined at the development stage referred to as Milestone B.

(5)

The amounts of increases or decreases to nonrecurring design and engineering cost attributable to achieving compliance with the cost limitation.

(6)

The amounts of increases or decreases to cost required to correct deficiencies that may affect the safety of the ship and personnel or otherwise preclude the ship from safe operations and crew certification.

(7)

Contract cost adjustments directly attributed to the effect of Hurricane Katrina in August 2005 or other force majeure contract modifications.

(c)

Limitation on Technology Insertion Cost Adjustment

The Secretary of the Navy may use the authority under paragraph (4) of subsection (b) to adjust the amount set forth in subsection (a) for a ship referred to in that subsection with respect to insertion of new technology into that ship only if—

(1)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology would lower the life-cycle cost of the ship; or

(2)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology is required to meet an emerging threat and the Secretary of Defense certifies to those committees that such threat poses grave harm to national security.

(d)

Written notice of change in amount

(1)

Requirement

The Secretary of the Navy shall submit to the congressional defense committees each year, at the same time that the budget is submitted under section 1105(a) of title 31, United States Code, for the next fiscal year, written notice of any change in the amount set forth in subsection (a) during the preceding fiscal year that the Secretary has determined to be associated with a cost referred to in subsection (b).

(2)

Effective date

The requirement in paragraph (1) shall become effective with the budget request for the year of procurement of the first ship referred to in subsection (a).

126.

Cost limitation for San Antonio (LPD-17) class amphibious ship program

(a)

Limitation

(1)

Procurement cost

The total amount obligated or expended from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, for the San Antonio-class amphibious ships designated as LPD–22, LPD–23, LPD–24, and LPD–25 may not exceed the amount for each such vessel specified in paragraph (2).

(2)

Specified cost limit by vessel

The limitation under this subsection for each vessel specified in paragraph (1) is the following:

The Secretary of the Navy may adjust the amount set forth in subsection (a) for any ship specified in that subsection by the following:

(1)

The amounts of increases or decreases in costs attributable to economic inflation after September 30, 2006.

(2)

The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2006.

(3)

The amounts of outfitting costs and post-delivery costs incurred for that ship.

(4)

The amounts of increases or decreases in costs of that ship that are attributable to insertion of new technology into that ship, as compared to the technology built into the U.S.S. San Antonio (LPD–17), the lead ship of the LPD–17 class.

(5)

Contract cost adjustments directly attributed to the effect of Hurricane Katrina in August 2005 or other force majeure contract modifications.

(6)

The amounts of closeout costs associated with completion of the LPD–17 class program.

(c)

Limitation on technology insertion cost adjustment

The Secretary of the Navy may use the authority under paragraph (4) of subsection (b) to adjust the amount set forth in subsection (a) for any LPD–17 class ship with respect to insertion of new technology into that ship only if—

(1)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology would lower the life-cycle cost of the ship; or

(2)

the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology is required to meet an emerging threat and the Secretary of Defense certifies to those committees that such threat poses grave harm to national security.

(d)

Written notice of change in amount

(1)

Requirement

The Secretary of the Navy shall submit to the congressional defense committees each year, at the same time that the budget is submitted under section 1105(a) of title 31, United States Code, for the next fiscal year, written notice of any change in the amount set forth in subsection (a) during the preceding fiscal year that the Secretary has determined to be associated with a cost referred to in subsection (b).

(2)

Effective date

The requirement in paragraph (1) shall become effective with the budget request for the year of procurement of the first ship referred to in subsection (a).

127.

Multiyear procurement authority for V–22 tiltrotor aircraft program

The Secretary of the Navy, in accordance with section 2306b of title 10, United States Code, and acting as executive agent for the Secretary of the Air Force and the commander of the United States Special Operations Command, may enter into a multiyear contract, beginning with the fiscal year 2008 program year, for procurement of V–22 tiltrotor aircraft.

128.

Alternative technologies for future surface combatants

(a)

Findings

Congress makes the following findings:

(1)

Securing and maintaining access to affordable and plentiful sources of energy is a vital national security interest for the United States.

(2)

The Nation’s dependence upon foreign oil is a threat to national security due to the inherently volatile nature of the global oil market and the political instability of some of the world’s largest oil producing states.

(3)

Given the recent increase in the cost of crude oil, which cannot realistically be expected to improve over the long term, other energy sources must be seriously considered.

(4)

Alternate propulsion sources such as nuclear power offer many advantages over conventional power for major surface combatant ships of the Navy, including—

(A)

virtually unlimited high-speed endurance;

(B)

elimination of vulnerable refueling; and

(C)

reduction in the requirement for replenishment vessels and the need to protect those vessels.

(b)

Sense of Congress

In light of the findings in subsection (a), it is the sense of Congress that the Navy should make greater use of alternative technologies, including expanded application of integrated power systems, fuel cells, and nuclear power, for propulsion of future major surface combatant ships.

(c)

Requirement

The Secretary of the Navy shall include integrated power systems, fuel cells, and nuclear power as propulsion alternatives to be evaluated within the analysis of alternatives for future major surface combatant ships.

129.

Sense of Congress regarding the size of the attack submarine force

(a)

Findings

Congress makes the following findings:

(1)

The United States Navy must be large enough, agile enough, and lethal enough to deter any threat and defeat any foe.

(2)

The proliferation of modern nuclear and nonnuclear submarines in the navies of nations around the globe will make undersea superiority a more significant challenge in the future.

(3)

The unique combination of firepower, stealth, sensors, and communications equipment contained in a modern attack submarine make the attack submarine a critical component of the Armed Forces of the United States.

(4)

The report entitled Report to Congress on Annual Long-Range Plan for Construction of Naval Vessels for fiscal year 2007, submitted to Congress by the Secretary of the Navy pursuant to section 231 of title 10, United States Code—

(A)

identifies future naval force structure requirements indexed to Department of Defense fiscal year 2020 threat assessments and compliant with the Fiscal Year 2006 Quadrennial Defense Review and, with respect to the attack submarine force, identifies a need for the Navy to maintain a fleet of not less than 48 attack submarines; and

(B)

projects that the attack submarine force will fall below 48 vessels between 2020 and 2032.

(b)

Sense of congress

In light of the findings in subsection (a), it is the sense of Congress that the Secretary of the Navy should take all reasonable effort to accelerate the construction of Virginia Class submarines to maintain the attack submarine force structure at not less than 48 submarines and (if the number of attack submarines should fall below 48), to minimize the period the attack submarine force remains below 48 vessels.

130.

Quality control in procurement of ship critical safety items and related services

(a)

Quality control policy

The Secretary of Defense shall prescribe in regulations a quality control policy for the procurement of the following:

(1)

Ship critical safety items.

(2)

Modifications, repair, and overhaul of ship critical safety items.

(b)

Elements

The policy required under subsection (a) shall include requirements as follows:

(1)

That the head of the design control activity for ship critical safety items establish processes to identify and manage the procurement, modification, repair, and overhaul of such items.

(2)

That the head of the contracting activity for a ship critical safety item enter into a contract for the procurement, modification, repair, or overhaul of such item only with a source on a qualified manufacturers list or a source approved by the design control activity in accordance with section 2319 of title 10, United States Code (as amended by subsection (d)).

(3)

That the ship critical safety items delivered, and the services performed with respect to such items, meet all technical and quality requirements specified by the design control activity.

(c)

Definitions

In this section, the terms ship critical safety item and design control activity have the meanings given such terms in subsection (g) of section 2319 of title 10, United States Code (as so amended).

(d)

Conforming amendments

Section 2319 of title 10, United States Code, is amended—

(1)

in subsection (c)(3), by inserting or ship critical safety item after aviation critical safety item; and

(2)

in subsection (g)—

(A)

by redesignating paragraph (2) as paragraph (3);

(B)

by inserting after paragraph (1) the following new paragraph (2):

(2)

The term ship critical safety item means any ship part, assembly, or support equipment containing a characteristic the failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in loss of or serious damage to the ship or unacceptable risk of personal injury or loss of life.

by inserting , or the seaworthiness of a ship or ship equipment, after equipment; and

(iii)

by striking the item and inserting such item.

D

Air Force Programs

131.

Bomber force structure

(a)

Requirement for B–52 force structure

(1)

Retirement limitation

During the B–52 retirement limitation period, the Secretary of the Air Force—

(A)

may not retire more than 18 B–52 aircraft; and

(B)

shall maintain not less than 44 such aircraft as combat-coded aircraft.

(2)

B–52 retirement limitation period

For purposes of paragraph (1), the B–52 retirement limitation period is the period beginning on the date of the enactment of this Act and ending on the date that is the earlier of—

(A)

January 1, 2018; and

(B)

the date as of which a long-range strike replacement aircraft with equal or greater capability than the B-52H model aircraft has attained initial operational capability status.

(b)

Limitation on retirement pending report on bomber force structure

(1)

Limitation

No funds authorized to be appropriated for the Department of Defense may be obligated or expended for retiring any of the 93 B–52H bomber aircraft in service in the Air Force as of the date of the enactment of this Act until 45 days after the date on which the Secretary of the Air Force submits the report specified in paragraph (2).

(2)

Report

A report specified in this subsection is a report submitted by the Secretary of the Air Force to the Committees on Armed Services of the Senate and the House of Representatives on the amount and type of bomber force structure of the Air Force, including the matters specified in paragraph (4).

(3)

Amount and type of bomber force structure defined

In this subsection, the term amount and type of bomber force structure means the number of each of the following types of aircraft that are required to carry out the national security strategy of the United States:

(A)

B-2 bomber aircraft.

(B)

B-52H bomber aircraft.

(C)

B-1 bomber aircraft.

(4)

Matter to be included

A report under paragraph (2) shall include the following:

(A)

The plan of the Secretary of the Air Force for the modernization of the B–52, B–1, and B–2 bomber aircraft fleets.

(B)

The amount and type of bomber force structure for the conventional mission and strategic nuclear mission in executing two overlapping swift defeat campaigns.

(C)

A justification of the cost and projected savings of any reductions to the B-52H bomber aircraft fleet as a result of the retirement of the B-52H bomber aircraft covered by the report.

(D)

The life expectancy of each bomber aircraft to remain in the bomber force structure.

(E)

The capabilities of the bomber force structure that would be replaced, augmented, or superseded by any new bomber aircraft.

(5)

Preparation of report

A report under paragraph (2) shall be prepared by the Institute for Defense Analyses and submitted to the Secretary of the Air Force for submittal by the Secretary in accordance with that paragraph.

132.

Strategic airlift force structure

Section 8062 of title 10, United States Code, is amended by adding at the end the following new subsection:

(g)(1)

Effective October 1, 2008, the Secretary of the Air Force shall maintain a total aircraft inventory of strategic airlift aircraft of not less than 299 aircraft.

(2)

In this subsection:

(A)

The term strategic airlift aircraft means an aircraft—

(i)

that has a cargo capacity of at least 150,000 pounds; and

(ii)

that is capable of transporting outsized cargo an unrefueled range of at least 2,400 nautical miles.

(B)

The term outsized cargo means any single item of equipment that exceeds 1,090 inches in length, 117 inches in width, or 105 inches in height.

.

133.

Limitation on retirement of U–2 aircraft

(a)

Fiscal year 2007

The Secretary of the Air Force may not retire any U–2 aircraft of the Air Force in fiscal year 2007.

(b)

Years after fiscal year 2007

(1)

Certification required

After fiscal year 2007, the Secretary of the Air Force may retire a U–2 aircraft only if the Secretary of Defense certifies to Congress that the intelligence, surveillance, and reconnaissance (ISR) capabilities provided by the U–2 aircraft no longer contribute to mitigating any gaps in intelligence, surveillance, and reconnaissance capabilities identified in the 2006 Quadrennial Defense Review.

(2)

Limitations

No action may be taken by the Department of Defense to retire (or to prepare to retire) any U–2 aircraft before a certification specified in paragraph (1) is submitted to Congress. If such a certification is submitted, no such action may be taken until after the end of the 60-day period beginning on the date on which the certification is submitted.

134.

Multiyear procurement authority for F–22A Raptor fighter aircraft

(a)

Prohibition on use of incremental funding

The Secretary of the Air Force may not use incremental funding for the procurement of F–22A aircraft.

(b)

Multiyear Authority

The Secretary of the Air Force may enter into a multiyear contract for the procurement of up to 60 F–22A Raptor fighter aircraft beginning with the 2007 program year.

(c)

Compliance With Law Applicable to Multiyear Contracts

A contract under subsection (b) for the procurement of F–22A aircraft shall be entered into in accordance with section 2306b of title 10, United States Code, except that, notwithstanding subsection (k) of that section, such a contract may not be for a period in excess of three program years.

(d)

Secretary of Defense Certification

In the case of a contract under subsection (b) for the procurement of F–22A aircraft, a certification under subsection (i)(1)(A) of section 2306b of title 10, United States Code, with respect to that contract may only be submitted if the certification includes an additional certification by the Secretary that each of the conditions specified in subsection (a) of that section has been satisfied with respect to that contract, as follows:

(1)

That the use of such contract will result in substantial savings of the total anticipated costs of carrying out the program through annual contracts.

(2)

That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.

(3)

That there is a reasonable expectation that throughout the contemplated contract period the Secretary of the Air Force will request funding for the contract at the level required to avoid contract cancellation.

(4)

That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.

(5)

That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic.

(6)

That the use of such contract will promote the national security of the United States.

In certifying that the cost savings are substantial, the Secretary shall duly consider the historical cost savings that led to a decision to proceed with a multiyear procurement contract under section 2306b of title 10, United States Code, in the case of previous aviation-related multiyear contracts authorized by law dating back to fiscal year 1982.(e)

FFRDC Cost Report

The Secretary of Defense shall provide for a federally funded research and development center (other than the Institute for Defense Analyses) to report on the cost estimates for a three year, 60-aircraft, F-22A multiyear procurement program, beginning in fiscal year 2007, compared to a corresponding annual procurement program.

(f)

Notice-and-Wait Requirement

Upon submission to Congress of a certification referred to in subsection (d) with respect to a proposed contract under subsection (b) for the procurement of F–22A aircraft and the Secretary’s submission to the congressional defense committees of the report referred to in subsection (e), the contract may then be entered into only after the end of the 30-day period beginning on the later of the date of the submission of the certification or the date of the submission of the report.

135.

Limitation on retirement of KC-135E aircraft during fiscal year 2007

(a)

Limitation

The number of KC-135E aircraft retired by the Secretary of the Air Force during fiscal year 2007 may not exceed 29.

(b)

Treatment of retired aircraft

The Secretary of the Air Force shall maintain each KC-135E aircraft that is retired by the Secretary after September 30, 2006, in a condition that would allow recall of that aircraft to future service in the Air Force Reserve, Air National Guard, or active forces aerial refueling force structure.

136.

Limitation on retirement of F-117A aircraft during fiscal year 2007

(a)

Limitation

The number of F-117A aircraft retired by the Secretary of the Air Force during fiscal year 2007 may not exceed 10.

(b)

Treatment of retired aircraft

The Secretary of the Air Force shall maintain each F-117A aircraft that is retired by the Secretary after September 30, 2006, in a condition that would allow recall of that aircraft to future service.

137.

Limitation on retirement of C–130E tactical airlift aircraft

(a)

Limitation

The number of C–130E tactical airlift aircraft retired by the Secretary of the Air Force during fiscal year 2007 may not exceed 51.

(b)

Treatment of retired aircraft

The Secretary of the Air Force shall maintain each C-130E tactical airlift aircraft that is retired by the Secretary after September 30, 2006, in a condition that would allow recall of that aircraft to future service.

138.

Procurement of Joint Primary Aircraft Training System aircraft after fiscal year 2006

Any Joint Primary Aircraft Training System (JPATS) aircraft procured after fiscal year 2006 shall be procured through a contract under part 15 of the Federal Acquisition Regulation (FAR), relating to acquisition of items by negotiated contract (48 C.F.R. 15.000 et seq.), rather than through a contract under part 12 of the Federal Acquisition Regulation, relating to acquisition of commercial items (48 C.F.R. 12.000 et seq.).

139.

Minuteman III intercontinental ballistic missile modernization

(a)

Modernization of intercontinental ballistic missiles required

The Secretary of the Air Force shall modernize Minuteman III intercontinental ballistic missiles in the United States inventory as required to maintain a sufficient supply of launch test assets and spares to sustain the deployed force of such missiles through 2030.

(b)

Limitation on termination of modernization programs pending report

(1)

Limitation

No funds authorized to be appropriated for the Department of Defense may be obligated or expended for the termination of any ICBM modernization program with respect to the Minuteman III intercontinental ballistic missile system, or for the withdrawal of any Minuteman III intercontinental ballistic missile from the active force, until 30 days after the date on which the Secretary of Defense submits to the congressional defense committees a report described in subsection (c).

(2)

ICBM modernization program defined

In this subsection, the term ICBM Modernization program means each of the following:

(A)

The Guidance Replacement Program (GRP).

(B)

The Propulsion Replacement Program (PRP).

(C)

The Propulsion System Rocket Engine (PSRE) program.

(D)

The Safety Enhanced Reentry Vehicle (SERV) program.

(c)

Report elements

A report under subsection (b)(1) is a report setting forth the following:

(1)

A detailed strategic justification for the proposal to reduce the Minuteman III intercontinental ballistic missile force from 500 to 450 missiles, including an analysis of the effects of the reduction on the ability of the United States to assure allies and dissuade potential competitors.

(2)

A detailed analysis of the strategic ramifications of continuing to equip a portion of the Minuteman III missile force with multiple independent warheads rather than single warheads.

(3)

An assessment of the test assets and spares required to maintain a force of 500 deployed Minuteman III missiles through 2030.

(4)

An assessment of the test assets and spares required to maintain a force of 450 deployed Minuteman III missiles through 2030.

(5)

An inventory of currently available Minuteman III missile test assets and spares.

(6)

A plan to sustain and complete the modernization of all deployed and spare Minuteman III missiles, a test plan, and an analysis of the funding required to carry out modernization of all deployed and spare Minuteman III missiles.

(7)

An assessment of whether halting upgrades to the Minuteman III missiles withdrawn from the deployed force would compromise the ability of those missiles to serve as test assets.

(8)

A description of the plan of the Department of Defense for extending the life of the Minuteman III missile force beyond fiscal year 2030.

E

Joint and Multiservice Matters

141.

Clarification of limitation on initiation of new unmanned aerial vehicle systems

(a)

Applicability of limitation only to procurement funds

Subsection (a) of section 142 of National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3164) is amended—

(1)

by inserting for procurement after the Department of Defense; and

(2)

by inserting before the period at the end the following: (or by an official within the Office of the Under Secretary designated by the Under Secretary for that purpose).

(b)

Applicability only to new systems

Subsection (b) of that section is amended to read as follows:

(b)

Exception for Existing Systems

The limitation in subsection (a) does not apply with respect to an unmanned aerial vehicle (UAV) system (or any component or other item of associated equipment of any such system described in subsection (a)) if as of January 6, 2006—

(1)

the system (or component or item of associated equipment) to be procured is otherwise under contract or has previously been procured by the Department; or

(2)

funds have been appropriated but not yet obligated for the system (or component or item of associated equipment) .

Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Department of Defense for research, development, test, and evaluation as follows:

(1)

For the Army, $10,876,609,000.

(2)

For the Navy, $17,383,857,000.

(3)

For the Air Force, $24,235,951,000.

(4)

For Defense-wide activities, $21,111,559,000, of which $181,520,000 is authorized for the Director of Operational Test and Evaluation.

202.

Amount for defense science and technology

(a)

Fiscal year 2007

Of the amounts authorized to be appropriated by section 201, $11,662,554,000 shall be available for the Defense Science and Technology Program, including basic research, applied research, and advanced technology development projects.

For purposes of this section, the term basic research, applied research, and advanced technology development means work funded in program elements for defense research and development under Department of Defense budget activity 1, 2, or 3.

The Secretary of Defense shall provide for the development and procurement of the propulsion system for the Joint Strike Fighter aircraft through the continued development and sustainment of two interchangeable propulsion systems for that aircraft by two separate contractors throughout the life cycle of the aircraft.

(2)

Modifications prohibited

Except as provided by paragraph (3), the Secretary may not carry out any modification to the acquisition program for the Joint Strike Fighter aircraft that would result in the development or procurement of the propulsion system for that aircraft in a manner other than that required by paragraph (1).

(3)

Modifications allowed

Notwithstanding paragraph (1), a modification described in paragraph (2) may be carried out to the extent that each of the following requirements is met:

(A)

The Secretary of Defense has notified the congressional defense committees of the modification.

(B)

Each of the reports required by subsection (b) has been submitted.

(C)

Funds are appropriated for that purpose pursuant to an authorization of appropriations.

(b)

Independent Cost Analyses

(1)

In general

A comprehensive and detailed cost analysis of the Joint Strike Fighter engine program shall be independently performed by each of the following:

(A)

The Comptroller General.

(B)

A federally funded research and development center selected by the Secretary of Defense.

(C)

The Secretary of Defense, acting through the Cost Analysis Improvement Group of the Office of the Secretary of Defense.

(2)

Matters covered

Each such cost analysis shall cover—

(A)

an alternative under which the Joint Strike Fighter aircraft is capable of using the F135 engine only;

(B)

an alternative under which the program executes a one-time firm-fixed price contract for a selected propulsion system for the Joint Strike Fighter aircraft for the life cycle of the aircraft following the Initial Service Release of the propulsion system in fiscal year 2008;

(C)

an alternative under which the Joint Strike Fighter aircraft is capable of using either the F135 engine or the F136 engine, and the engine selection is carried out on a competitive basis; and

(D)

any other alternative, whether competitive or sole source, that would reduce total life-cycle cost, improve program schedule, or both.

(3)

Reports

Not later than March 15, 2007, the Secretary of Defense, the Comptroller General, and the chief executive officer of the federally funded research and development center selected under paragraph (1)(B) shall independently submit to the congressional defense committees a report on the cost analysis carried out under paragraph (1). Each such report shall include each of the following matters:

(A)

The key assumptions used in carrying out the cost analysis.

(B)

The methodology and techniques used in carrying out the cost analysis.

(C)

For each alternative required by paragraph (2)—

(i)

a comparison of the life-cycle costs, including costs in current and constant dollars and a net-present-value analysis;

(ii)

estimates of—

(I)

supply, maintenance, and other operations manpower required to support the alternative;

(II)

the number of flight hours required to achieve engine maturity and the year in which that is expected to be achieved; and

(III)

the total number of engines expected to be procured over the lifetime of the Joint Strike Fighter program; and

(iii)

an evaluation of benefits, other than cost, provided by competition, to include an assessment of improved performance, operational readiness and warfighting capability, risk reduction, technology innovation, and contractor responsiveness.

(D)

A description of the acquisition strategies (including development and production) that were used for, and experience with respect to cost, schedule, and performance under, past acquisition programs for engines for tactical fighter aircraft, including the F–15, F–16, F–18, and F–22 aircraft.

(E)

A comparison of the experiences under past acquisition programs carried out on a sole-source basis with respect to performance, savings, maintainability, reliability, and technical innovation.

(F)

The impact that canceling the F136 competitive engine would have on the high-performance military engine industrial base, and on the Department of Defense’s ability to make competitive engine choices for future combat aircraft systems beyond the Joint Strike Fighter.

(G)

Conclusions and recommendations.

(4)

Certifications

In submitting the report required by paragraph (3), the Comptroller General and the chief executive officer of the federally funded research and development center shall also submit a certification as to whether the Secretary of Defense provided access to sufficient information to enable the Comptroller General or the chief executive officer, as the case may be, to make informed judgments on the matters required to be included in the report.

(c)

Life-cycle costs defined

In this section, the term life-cycle costs includes—

(1)

those elements of cost that would be considered for a life-cycle cost analysis for a major defense acquisition program, including procurement of engines, procurement of spare engines, and procurement of engine components and parts; and

Expansion and extension of authority to award prizes for advanced technology achievements

(a)

Expansion

(1)

In general

Subsection (a) of section 2374a of title 10, United States Code, is amended—

(A)

by striking Director of the Defense Advanced Research Projects Agency and inserting Director of Defense Research and Engineering and the service acquisition executive for each military department; and

(B)

by striking a program and inserting programs.

(2)

Conforming amendments

Such section is further amended—

(A)

in subsection (b), by striking The program and inserting Each program; and

(B)

in subsection (d)—

(i)

by striking The program and inserting A program; and

(ii)

by striking the Director and inserting an official referred to in that subsection.

(b)

Extension

Subsection (f) of such section is amended by striking September 30, 2007 and inserting September 30, 2010.

(c)

Modification of reporting requirement

Subsection (e) of such section is amended to read as follows:

(e)

Annual report

(1)

In general

Not later than March 1 of each year, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the activities carried out during the preceding fiscal year under the authority in subsection (a).

(2)

Information included

The report for a fiscal year under this subsection shall include, for each program under subsection (a), the following:

(A)

A description of the proposed goals of the competitions established under the program, including the areas of research, technology development, or prototype development to be promoted by such competitions and the relationship of such areas to the military missions of the Department of Defense.

(B)

An analysis of why the utilization of the authority in subsection (a) was the preferable method of achieving the goals described in subparagraph (A) as opposed to other authorities available to the Department, such as contracts, grants, and cooperative agreements.

(C)

The total amount of cash prizes awarded under the program, including a description of the manner in which the amounts of cash prizes awarded and claimed were allocated among the accounts of the Department for recording as obligations and expenditures.

(D)

The methods used for the solicitation and evaluation of submissions under the program, together with an assessment of the effectiveness of such methods.

(E)

A description of the resources, including personnel and funding, used in the execution of the program, together with a detailed description of the activities for which such resources were used and an accounting of how funding for execution was allocated among the accounts of the Department for recording as obligations and expenditures.

(F)

A description of any plans to transition the technologies or prototypes developed as a result of the program into an acquisition program of the Department.

(3)

Suspension of authority for failure to include information

For each program under subsection (a), the authority to obligate or expend funds under that program is suspended as of the date specified in paragraph (1) if the Secretary does not, by that date, submit a report that includes, for that program, all the information required by paragraph (2). As of the date on which the Secretary does submit a report that includes, for that program, all the information required by paragraph (2), the suspension is lifted.

Assessment of additional issues required in the event of critical cost growth

Section 2433(e)(2)(A) of title 10, United States Code, is amended—

(1)

by redesignating clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv) respectively; and

(2)

by inserting before clause (ii) (as so redesignated) the following new clause:

(i)

any design, engineering, manufacturing, or technology integration issues that contributed significantly to the cost growth of the program;

.

(b)

Requirement for challenge program to address critical cost growth threshold breaches in major defense acquisition programs

(1)

Solicitation of challenge proposals

Section 2359b(c) of title 10, United States Code, is amended—

(A)

by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; and

(B)

by inserting after paragraph (3) the following new paragraph (4):

(4)(A)

The Under Secretary shall establish procedures for the prompt issuance of a solicitation for challenge proposals addressing—

(i)

any acquisition program for which, since the last such announcement, the Secretary concerned has determined under section 2433(d) of this title that the program’s acquisition unit cost or procurement unit cost has increased by a percentage equal to or greater than the critical cost growth threshold for the program (in this section referred to as a critical cost growth threshold breach); and

(ii)

any design, engineering, manufacturing, or technology integration issues, in accordance with the assessment required by section 2433(e)(2)(A) of this title, that have contributed significantly to the cost growth of such program.

(B)

A solicitation under this paragraph may be included in a broad agency announcement issued pursuant to paragraph (3) as long as the broad agency announcement is released in an expeditious manner following the determination of the Secretary concerned that a critical cost growth threshold breach has occurred with respect to a major defense acquisition program.

.

(2)

Requirement for guidelines for covering costs of challenge proposals

Section 2359b(e) of such title is amended by adding at the end the following new paragraph:

(3)

In the case of a challenge proposal submitted in response to a solicitation issued as a result of a critical cost growth threshold breach that is determined under full review and evaluation to satisfy each of the criteria specified in subsection (c)(5), the Under Secretary shall establish guidelines for covering the costs of the challenge proposal. If appropriate, such guidelines shall not be restricted to funding provided by the Defense Acquisition Challenge Program, but shall also consider alternative funding sources, such as the acquisition program with respect to which the breach occurred.

Under procedures prescribed by the Under Secretary, if a challenge proposal is determined by a Panel to satisfy each of the criteria specified in subsection (c)(5), but is not determined under a full review and evaluation to satisfy such criteria, the following provisions apply:

(1)

The office carrying out the full review and evaluation shall provide to the Panel that conducted the preliminary evaluation a statement containing a summary of the rationale for the unfavorable evaluation.

(2)

If the Panel disagrees with the rationale provided under paragraph (1), the Panel may return the challenge proposal to the office for further consideration.

.

(4)

Additional information required to be included in annual report

Section 2359b(j) of such title, as redesignated by paragraph (3), is amended by striking No report is required for a fiscal year in which the Challenge Program is not carried out. and inserting The report shall also include a list of each challenge proposal that was determined by a Panel to satisfy each of the criteria specified in subsection (c)(5), but was not determined under a full review and evaluation to satisfy such criteria, together with a detailed rationale for the Department’s determination that such criteria were not satisfied..

(c)

Evaluation and report required

The Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the service acquisition executives, shall—

(1)

evaluate the efficacy of the incentives provided to encourage the adoption of each challenge proposal receiving favorable full review and evaluation, as required by section 2359b(e)(2) of title 10, United States Code;

(2)

identify additional incentives and authorities required, if any, to further facilitate the adoption of each challenge proposal receiving favorable full review and evaluation, particularly in the case of challenge proposals submitted in response to critical cost growth threshold breaches (as such term is used in section 2359b of such title); and

(3)

not later than March 1, 2007, submit to the Committees on Armed Services of the Senate and the House of Representatives a report setting forth the results of such evaluation and identification.

(d)

Priority for proposals from certain businesses

Paragraph (6) of section 2359b(c) of such title, as redesignated by paragraph (b)(1)(A), is amended to read as follows:

(6)

The Under Secretary—

(A)

may establish procedures to ensure that the Challenge Program does not become an avenue for the repetitive submission of proposals that have been previously reviewed and found not to have merit; and

(B)

may establish procedures to ensure that the Challenge Program establishes appropriate priorities for proposals from businesses that are not major contractors with the Department of Defense.

.

(e)

Confidentiality

Subsection (h) of section 2359b of such title, as redesignated by subsection (b)(3), is amended—

(1)

by amending the heading to read as follows: Conflicts of Interest and Confidentiality; and

(2)

by striking the period at the end and inserting the following: and that the identity of any person or activity submitting a challenge proposal is not disclosed outside the Federal Government, prior to contract award, without the consent of the person or activity. For purposes of the proceeding sentence, the term Federal Government includes both employees of the Federal Government and employees of Federal Government contractors providing advisory and assistance services as described in part 37 of the Federal Acquisition Regulation..

(f)

Extension

Subsection (k) of section 2359b of title 10, United States Code, as redesignated by subsection (b)(3), is amended by striking September 30, 2007 and inserting September 30, 2012.

(g)

Additional conforming amendments

Section 2359b of such title is further amended—

(1)

in subsection (c)(7), as redesignated by subsection (b), by striking paragraph (4) and inserting paragraph (5);

Not later than 120 days after the preliminary design review of the Future Combat Systems program is completed, the Secretary of Defense shall carry out a Defense Acquisition Board milestone review of the Future Combat Systems program. The milestone review shall include an assessment as to each of the following:

(1)

Whether the warfighter’s needs are valid and can be best met with the concept of the program.

(2)

Whether the concept of the program can be developed and produced within existing resources.

(3)

Whether the program should—

(A)

continue as currently structured;

(B)

continue in restructured form; or

(C)

be terminated.

(b)

Determinations to be made in assessing whether program should continue

In making the assessment required by subsection (a)(3), the Secretary shall make a determination with respect to each of the following:

(1)

Whether each critical technology for the program is at least Technical Readiness Level 6.

(2)

For each system and network component of the program, what the key design and technology risks are, based on System Functional Reviews, Preliminary Design Reviews, and Technical Readiness Levels.

(3)

Whether actual demonstrations, rather than simulations, have shown that the concept of the program will work.

(4)

Whether actual demonstrations, rather than plans, have shown that the software for the program is functional.

(5)

What the cost estimate for the program is.

(6)

What the affordability assessment for the program is, based on that cost estimate.

(c)

Report

The Secretary shall submit to the congressional defense committees a report on the findings and conclusions of the milestone review required by subsection (a). The report shall include, and display, each of the assessments required by subsection (a) and each of the determinations required by subsection (b).

(d)

Restriction on procurement funds effective Fiscal 2009

(1)

In general

For fiscal years beginning with 2009, the Secretary may not obligate any funds for procurement for the Future Combat Systems program.

(2)

Exceptions

Paragraph (1) does not apply with respect to—

(A)

the obligation of funds for costs attributable to an insertion of new technology (to include spinout systems) into the current force, if the insertion is approved by the Under Secretary of Defense for Acquisition, Technology, and Logistics; or

(B)

the obligation of funds for the non-line-of-sight cannon system.

(3)

Termination

The requirement of paragraph (1) terminates after the report required by subsection (c) is submitted.

Of the amounts appropriated pursuant to the authorization of appropriations in section 201(4) for research, development, test, and evaluation, Defense-wide, $4,000,000 may be available to implement or evaluate challenge proposals specified in subsection (b).

(b)

Challenge proposals covered

A challenge proposal referred to in subsection (a) is a proposal under the Defense Acquisition Challenge Program established by section 2359b of title 10, United States Code, that relates to technology directly contributing to combat systems and open architecture design for Navy ship platforms.

216.

Independent estimate of costs of the Future Combat Systems

(a)

Independent estimate required

(1)

In general

The Secretary of Defense shall provide for the preparation of an independent estimate of the anticipated costs of systems development and demonstration with respect to the Future Combat Systems.

(2)

Conduct of estimate

The estimate required by this subsection shall be prepared by a federally funded research and development center selected by the Secretary for purposes of this subsection.

(3)

Matters to be addressed

The independent estimate prepared under this subsection shall address costs of research, development, test, and evaluation, and costs of procurement, for—

(A)

the system development and demonstration phase of the core Future Combat Systems;

(B)

the Future Combat Systems technologies to be incorporated into the equipment of the current force of the Army (often referred to as spinouts);

(C)

the installation kits for the incorporation of such technologies into such equipment;

(D)

the systems treated as complementary systems for the Future Combat Systems;

(E)

science and technology initiatives that support the Future Combat Systems program; and

(F)

any pass-through charges anticipated to be assessed by the lead systems integrator of the Future Combat Systems and its major subcontractors.

(4)

Submittal to congress

Upon completion of the independent estimate required by this subsection, the Secretary shall submit to the congressional defense committees a report on the estimate.

(5)

Deadline for submittal

The report described in paragraph (4) shall be submitted not later than April 1, 2007.

(b)

Pass-through charge defined

In this section, the term pass-through charge has the meaning given that term in section 805(c)(5) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3373).

217.

Funding of defense science and technology programs

(a)

Failure to comply with funding objective

Section 212 of the National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 2501 note) is amended in subsection (a) by striking especially the Air Force Science and Technology Program,.

(b)

Extension of funding objective

Such section is amended in subsection (b) by striking through 2009 and inserting through 2012.

(c)

Actions following failure to comply with objective

Such section is further amended by adding at the end the following new subsection:

(c)

Actions following failure to comply with objective

If the proposed budget for a fiscal year covered by subsection (b) fails to comply with the objective set forth in that subsection, the Secretary of Defense shall submit to the congressional defense committees, at the same time that the Department of Defense budget justification materials for the next fiscal year are submitted to Congress—

(1)

a detailed, prioritized list, including estimates of required funding, of highly-rated science and technology projects received by the Department through competitive solicitations and broad agency announcements which—

(A)

are not funded solely due to lack of resources, but

(B)

represent science and technology opportunities that support the research and development programs and goals of the military departments and the Defense Agencies; and

(2)

a report, in both classified and unclassified form, containing an analysis and evaluation of international research and technology capabilities, including an identification of any technology areas in which the United States may not have global technical leadership within the next 10 years, in each of the technology areas described in the following plans:

(A)

The most current Joint Warfighting Science and Technology Plan required by section 270 of the National Defense Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 note).

(B)

The Defense Technology Area Plan of the Department of Defense.

(C)

The Basic Research Plan of the Department of Defense.

.

218.

Hypersonics development

(a)

Establishment of joint technology office on hypersonics

The Secretary of Defense shall establish within the Office of the Secretary of Defense a joint technology office on hypersonics. The office shall carry out the program required under subsection (b), and shall have such other responsibilities relating to hypersonics as the Secretary shall specify.

(b)

Program on hypersonics

The joint technology office established under subsection (a) shall carry out a program for the development of hypersonics for defense purposes.

(c)

Responsibilities

In carrying out the program required by subsection (b), the joint technology office established under subsection (a) shall do the following:

(1)

Coordinate and integrate current and future research, development, test, and evaluation programs and system demonstration programs of the Department of Defense on hypersonics.

(2)

Undertake appropriate actions to ensure—

(A)

close and continuous integration of the programs on hypersonics of the military departments with the programs on hypersonics of the Defense Agencies;

(B)

coordination of the programs referred to in subparagraph (A) with the programs on hypersonics of the National Aeronautics and Space Administration; and

(C)

that developmental testing resources are adequate and facilities are made available in a timely manner to support hypersonics research, demonstration programs, and system development.

(3)

Approve demonstration programs on hypersonic systems.

(4)

Ensure that any demonstration program on hypersonic systems that is carried out in any year after its approval under paragraph (3) is carried out only if certified under subsection (e) as being consistent with the roadmap under subsection (d).

(d)

Roadmap

(1)

Roadmap required

The joint technology office established under subsection (a) shall develop, and every two years revise, a roadmap for the hypersonics programs of the Department of Defense.

(2)

Coordination

The roadmap shall be developed and revised under paragraph (1) in coordination with the Joint Staff and in consultation with the National Aeronautics and Space Administration.

(3)

Elements

The roadmap shall include the following matters:

(A)

Anticipated or potential mission requirements for hypersonics.

(B)

Short-term, mid-term, and long-term goals for the Department of Defense on hypersonics, which shall be consistent with the missions and anticipated requirements of the Department over the applicable period.

(C)

A schedule for meeting such goals, including—

(i)

the activities and funding anticipated to be required for meeting such goals; and

(ii)

the activities of the National Aeronautics and Space Administration to be leveraged by the Department to meet such goals.

(D)

The test and evaluation facilities required to support the activities identified in subparagraph (C), along with the schedule and funding required to upgrade those facilities, as necessary.

(E)

Acquisition transition plans for hypersonics.

(4)

Submittal to Congress

The Secretary shall submit to the congressional defense committees—

(A)

at the same time as the submittal to Congress of the budget for fiscal year 2008 (as submitted pursuant to section 1105 of title 31, United States Code), the roadmap developed under paragraph (1); and

(B)

at the same time as the submittal to Congress of the budget for each even-numbered fiscal year after 2008, the roadmap revised under paragraph (1).

(e)

Annual review and certification of funding

(1)

Annual review

The joint technology office established under subsection (a) shall conduct on an annual basis a review of—

(A)

the funding available for research, development, test, and evaluation and demonstration programs within the Department of Defense for hypersonics, in order to determine whether or not such funding is consistent with the roadmap developed under subsection (d); and

(B)

the hypersonics demonstration programs of the Department, in order to determine whether or not such programs avoid duplication of effort and support the goals of the Department in a manner consistent with the roadmap developed under subsection (d).

(2)

Certification

The joint technology office shall, as a result of each review under paragraph (1), certify to the Secretary whether or not the funding and programs subject to such review are consistent with the roadmap developed under subsection (d).

(3)

Termination

The requirements of this subsection shall terminate after the submittal to Congress of the budget for fiscal year 2012 pursuant to section 1105 of title 31, United States Code.

(f)

Reports to Congress

If, as a result of a review under subsection (e), funding or a program on hypersonics is certified under that subsection not to be consistent with the roadmap developed under subsection (d), the Secretary shall submit to the congressional defense committees, at the same time as the submittal to Congress of the budget (as submitted pursuant to section 1105 of title 31, United States Code), a report on such funding or program, as the case may be, describing how such funding or program is not consistent with the roadmap, together with a statement of the actions to be taken by the Department.

219.

Report on program for replacement of nuclear warheads on certain Trident sea-launched ballistic missiles with conventional warheads

(a)

Report required

Not later than February 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report setting forth a proposal to replace nuclear warheads on 24 Trident D-5 sea-launched ballistic missiles with conventional kinetic warheads for deployment on submarines that carry Trident sea-launched ballistic missiles. The report shall be prepared in consultation with the Secretary of State.

(b)

Elements

The report required by subsection (a) shall include the following:

(1)

A description of the types of scenarios, types of targets, and circumstances in which a conventional sea-launched ballistic missile might be used.

(2)

A discussion of the weapon systems or weapons, whether current or planned, that could be used as an alternative for each of the scenarios, target types, and circumstances set forth under paragraph (1), and a statement of any reason why each such weapon system or weapon is not a suitable alternative to a conventional sea-launched ballistic missile.

(3)

A description of the command and control arrangements for conventional sea-launched ballistic missiles, including launch authority and the use of Permissive Action Links (PALs).

(4)

An assessment of the capabilities of other countries to detect and track the launch of a conventional or nuclear sea-launched ballistic missile.

(5)

An assessment of the capabilities of other countries to discriminate between the launch of a nuclear sea-launched ballistic missile and a conventional sea-launched ballistic missile, other than in a testing scenario.

(6)

An assessment of the notification and other protocols that would have to be in place before using any conventional sea-launched ballistic missile and a plan for entering into such protocols.

(7)

An assessment of the adequacy of the intelligence that would be needed to support an attack involving conventional sea-launched ballistic missiles.

(8)

A description of the total program cost, including the procurement costs of additional D-5 missiles, of the conventional Trident sea-launched ballistic missile program, by fiscal year.

(9)

An analysis and assessment of the implications for ballistic missile proliferation if the United States decides to go forward with the conventional Trident sea-launched ballistic missile program or any other conventional long-range ballistic missile program.

(10)

An analysis and assessment of the implications for the United States missile defense system if other countries use conventional long-range ballistic missiles.

(11)

An analysis of any problems created by the ambiguity that results from the use of the same ballistic missile for both conventional and nuclear warheads.

(12)

An analysis and assessment of the methods that other countries might use to resolve the ambiguities associated with a nuclear or conventional sea-launched ballistic missile.

(13)

An analysis, by the Secretary of State, of the international, treaty, and other concerns that would be associated with the use of a conventional sea-launched ballistic missile and recommendations for measures to mitigate or eliminate such concerns.

(14)

A joint statement by the Secretary of Defense and the Secretary of State on how to ensure that the use of a conventional sea-launched ballistic missile will not result in an intentional, inadvertent, mistaken, or accidental reciprocal or responsive launch of a nuclear strike by any other country.

C

Missile Defense Programs

221.

Fielding of ballistic missile defense capabilities

Upon approval by the Secretary of Defense, funds authorized to be appropriated for fiscal years 2007 and 2008 for research, development, test, and evaluation for the Missile Defense Agency may be used for the development and fielding of ballistic missile defense capabilities.

222.

Limitation on use of funds for space-based interceptor

(a)

Limitation

No funds appropriated or otherwise made available to the Department of Defense may be obligated or expended for the testing or deployment of a space-based interceptor until 90 days after the date on which a report described in subsection (c) is submitted.

(b)

Space-based interceptor defined

For purposes of this section, the term space-based interceptor means a kinetic or directed energy weapon that is stationed on a satellite or orbiting platform and that is intended to destroy another satellite in orbit or a ballistic missile launched from earth.

(c)

Report

A report described in this subsection is a report prepared by the Director of the Missile Defense Agency and submitted to the congressional defense committees containing the following:

(1)

A description of the essential components of a proposed space-based interceptor system, including a description of how the system proposed would enhance or complement other missile defense systems.

(2)

An estimate of the acquisition and life-cycle cost of the system described under paragraph (1), including lift cost and periodic replacement cost due to depreciation and attrition.

(3)

An analysis of the vulnerability of such a system to counter-measures, including direct ascent and co-orbital interceptors, and an analysis of the functionality of such a system in the aftermath of a nuclear detonation in space.

(4)

A projection of the foreign policy and national security implications of a space-based interceptor program, including the probable response of United States adversaries and United States allies.

223.

Policy of the United States on priorities in the development, testing, and fielding of missile defense capabilities

(a)

Findings

Congress makes the following findings:

(1)

In response to the threat posed by ballistic missiles, President George W. Bush in December 2002 directed the Secretary of Defense to proceed with the fielding of an initial set of missile defense capabilities in 2004 and 2005.

(2)

According to assessments by the intelligence community of the United States, North Korea tested in 2005 a new solid propellant short-range ballistic missile, conducted a launch of a Taepodong-2 ballistic missile/space launch vehicle in 2006, and is likely developing intermediate-range and intercontinental ballistic missile capabilities that could someday reach as far as the United States with a nuclear payload.

(3)

According to assessments by the intelligence community of the United States, Iran continued in 2005 to test its medium-range ballistic missile, and the danger that Iran will acquire a nuclear weapon and integrate it with a ballistic missile Iran already possesses is a reason for immediate concern.

(b)

Policy

It is the policy of the United States that the Department of Defense accord a priority within the missile defense program to the development, testing, fielding, and improvement of effective near-term missile defense capabilities, including the ground-based midcourse defense system, the Aegis ballistic missile defense system, the Patriot PAC-3 system, the Terminal High Altitude Area Defense system, and the sensors necessary to support such systems.

Section 232(g) of the National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended—

(1)

in paragraph (1), by striking through 2007 and inserting through 2008; and

(2)

in paragraph (2), by striking through 2008 and inserting through 2009.

225.

Submittal of plans for test and evaluation of the operational capability of the Ballistic Missile Defense System

Section 234(a) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3174; 10 U.S.C. 2431 note) is amended by adding at the end the following new paragraph:

(3)

Submittal to congress

Each plan prepared under this subsection and approved by the Director of Operational Test and Evaluation shall be submitted to the congressional defense committees not later than 30 days after the date of the approval of such plan by the Director.

.

226.

Annual reports on transition of ballistic missile defense programs to the military departments

(a)

Report required

Not later than March 1, 2007, and annually thereafter through 2013, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the congressional defense committees a report on the plans of the Department of Defense for the transition of missile defense programs from the Missile Defense Agency to the military departments.

(b)

Scope of reports

Each report required by subsection (a) shall cover the period covered by the future-years defense program that is submitted under section 221 of title 10, United States Code, in the year in which such report is submitted.

(c)

Elements

Each report required by subsection (a) shall include the following:

(1)

An identification of—

(A)

the missile defense programs planned to be transitioned from the Missile Defense Agency to the military departments; and

(B)

the missile defense programs, if any, not planned for transition to the military departments.

(2)

The schedule for transition of each missile defense program planned to be transitioned to a military department, and an explanation of such schedule.

(3)

A description of—

(A)

the status of the plans of the Missile Defense Agency and the military departments for the transition of missile defense programs from that agency to the military departments; and

(B)

the status of any agreement between the Missile Defense Agency and one or more of the military departments on the transition of any such program from that agency to the military departments, including any agreement on the operational test criteria that must be achieved before such transition.

(4)

An identification of the entity of the Department of Defense (whether the Missile Defense Agency, a military department, or both) that will be responsible for funding each missile defense program to be transitioned to a military department, and at what date.

(5)

A description of the type of funds that will be used (whether funds for research, development, test, and evaluation, procurement, military construction, or operation and maintenance) for each missile defense program to be transitioned to a military department.

(6)

An explanation of the number of systems planned for procurement for each missile defense program to be transitioned to a military department, and the schedule for procurement of each such system.

D

Other Matters

231.

Policies and practices on test and evaluation to address emerging acquisition approaches

(a)

Revision to report requirement

Section 2399(b) of title 10, United States Code, is amended—

(1)

by amending paragraph (2) to read as follows:

(2)

The Director shall analyze the results of the operational test and evaluation conducted for each major defense acquisition program. At the conclusion of such testing, the Director shall prepare a report stating—

(A)

the opinion of the Director as to—

(i)

whether the test and evaluation performed were adequate; and

(ii)

whether the results of such test and evaluation confirm that the items or components actually tested are effective and suitable for combat; and

(B)

additional information on the operational capabilities of the items or components that the Director considers appropriate based on the testing conducted.

;

(2)

by redesignating paragraph (5) as paragraph (6); and

(3)

by inserting after paragraph (4) the following:

(5)

If, before a final decision described in paragraph (4) is made for a major defense acquisition program, a decision is made within the Department of Defense to proceed to operational use of that program or to make procurement funds available for that program, the Director shall submit to the Secretary of Defense and the congressional defense committees the report with respect to that program under paragraph (2) as soon as practicable after the decision described in this paragraph is made.

.

(b)

Review and revision of policies and practices

(1)

Review

During fiscal year 2007, the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Director of Operational Test and Evaluation shall review Department of Defense policies and practices on test and evaluation in order to—

(A)

reaffirm the test and evaluation principles that should guide traditional acquisition programs; and

(B)

determine how best to apply appropriate test and evaluation principles to emerging acquisition approaches.

(2)

Revised guidance

If the Under Secretary determines as a result of the review under paragraph (1) that a revision of the policies and practices referred to in that paragraph is necessary, the Under Secretary and the Director shall jointly issue new or revised guidance for the Department of Defense on test and evaluation to address that determination.

(c)

Issues to be addressed

In carrying out subsection (b), the Under Secretary shall address policies and practices on test and evaluation in order to—

(1)

ensure the performance of test and evaluation activities with regard to—

(A)

items that are acquired pursuant to the authority for rapid acquisition and deployment of items in section 806 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 note);

(B)

programs that are conducted pursuant to the authority for spiral development in section 803 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2603; 10 U.S.C. 2430 note), or other authority for the conduct of incremental acquisition programs;

(C)

systems that are acquired pursuant to other emerging acquisition approaches, as approved by the Under Secretary; and

(D)

equipment that is not subject to the operational test and evaluation requirements in sections 2366 and 2399 of title 10, United States Code, but that may require limited operational test and evaluation for the purpose of ensuring the safety and survivability of such equipment and personnel using such equipment; and

(2)

ensure the appropriate use, if any, of operational test and evaluation resources to assess technology readiness levels for the purpose of section 2366a of title 10, United States Code, and other applicable technology readiness requirements.

(d)

Inclusion of testing needs in strategic plan

The Director, Test Resource Management Center, shall ensure that the strategic plan for Department of Defense test and evaluation resources developed pursuant to section 196 of title 10, United States Code—

(1)

reflects any testing needs of the Department of Defense that are identified as a result of activities under subsection (b); and

(2)

includes an assessment of the test and evaluation facilities, resources, and budgets that will be required to meet such needs.

(e)

Report to Congress

Not later than nine months after the date of the enactment of this Act, the Under Secretary and the Director of Operational Test and Evaluation shall submit to the congressional defense committees a report on the review conducted under paragraph (1) of subsection (b), including any new or revised guidance issued pursuant to paragraph (2) of that subsection.

(f)

Clarification of duties with respect to force protection equipment

Section 139(b) of title 10, United States Code, is amended—

(1)

by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and

(2)

by inserting after paragraph (2) the following:

(3)

provide guidance to and consult with the officials described in paragraph (2) with respect to operational test and evaluation or survivability testing (or both) within the Department of Defense of force protection equipment (including non-lethal weapons), which, in such a case—

(A)

shall be guidance and consultation for the purposes of—

(i)

expediting suitable operational test and evaluation;

(ii)

providing objective subject-matter expertise;

(iii)

encouraging data sharing between Department of Defense components; and

(iv)

where appropriate, facilitating the use of common test standards; and

(B)

does not authorize the Director—

(i)

to approve test and evaluation plans for such equipment; or

(ii)

to in any manner delay deployment of such equipment;

.

232.

Extension of requirement for Global Research Watch Program

Section 2365(f) of title 10, United States Code, is amended by striking September 30, 2006 and inserting September 30, 2011.

It is the sense of Congress that the Secretary of Defense should share technology with regard to the Joint Strike Fighter between the United States Government and the Government of the United Kingdom consistent with the national security interests of both nations.

The Secretary of Defense shall enter into a contract with an appropriate entity independent of the United States Government to conduct an assessment of various foreign and domestic technological approaches to vehicle-based active protection systems for defense against both chemical energy and kinetic energy top-attack and direct fire threats, including anti-tank missiles and rocket propelled grenades, mortars, and other similar battlefield threats.

(b)

Report

(1)

Report required

The contract required by subsection (a) shall require the entity entering into such contract to submit to the Secretary of Defense, and to the congressional defense committees, not later than 180 days after the date of the enactment of this Act, a report on the assessment required by that subsection.

(2)

Elements

The report required under paragraph (1) shall include—

(A)

a detailed comparative analysis and assessment of the technical approaches covered by the assessment under subsection (a), including the feasibility, military utility, cost, and potential short-term and long-term development and deployment schedule of such approaches; and

(B)

any other elements specified by the Secretary in the contract under subsection (a).

III

Operation and Maintenance

Subtitle A—Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Other Department of Defense programs.

Subtitle B—Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program manager.

Sec. 363. Expansion of payment of replacement value of personal property damaged during transport at Government expense.

A

Authorization of Appropriations

301.

Operation and maintenance funding

Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

(1)

For the Army, $24,416,352,000.

(2)

For the Navy, $31,157,639,000.

(3)

For the Marine Corps, $3,863,462,000.

(4)

For the Air Force, $31,081,257,000.

(5)

For Defense-wide activities, $20,093,876,000.

(6)

For the Army Reserve, $2,260,802,000.

(7)

For the Naval Reserve, $1,275,764,000.

(8)

For the Marine Corps Reserve, $211,311,000.

(9)

For the Air Force Reserve, $2,698,400,000.

(10)

For the Army National Guard, $4,776,421,000.

(11)

For the Air National Guard, $5,292,517,000.

(12)

For the United States Court of Appeals for the Armed Forces, $11,721,000.

Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

(1)

For the Defense Working Capital Funds, $161,998,000.

(2)

For the National Defense Sealift Fund, $1,071,932,000.

(3)

For the Defense Working Capital Fund, Defense Commissary, $1,184,000,000.

(4)

For the Pentagon Reservation Maintenance Revolving Fund, $18,500,000.

303.

Other Department of Defense programs

(a)

Defense health program

Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for the Defense Health Program, $21,426,621,000, of which—

(1)

$20,894,663,000 is for Operation and Maintenance;

(2)

$135,603,000 is for Research, Development, Test, and Evaluation; and

(3)

$396,355,000 is for Procurement.

(b)

Chemical agents and munitions destruction, defense

(1)

Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for Chemical Agents and Munitions Destruction, Defense, $1,277,304,000, of which—

(A)

$1,046,290,000 is for Operation and Maintenance; and

(B)

$231,014,000 is for Research, Development, Test, and Evaluation.

(2)

Amounts authorized to be appropriated under paragraph (1) are authorized for—

(A)

the destruction of lethal chemical agents and munitions in accordance with section 1412 of the Department of Defense Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521); and

(B)

the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.

(c)

Drug interdiction and counter-drug activities, defense-wide

Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2006 for expenses, not otherwise provided for, for Drug Interdiction and Counter-Drug Activities, Defense-wide, $926,890,000.

(d)

Defense Inspector General

Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2006 for expenses, not otherwise provided for, for the Office of the Inspector General of the Department of Defense, $216,297,000, of which—

(1)

$214,897,000 is for Operation and Maintenance; and

(2)

$1,400,000 is for Procurement.

B

Environmental Provisions

311.

Revision of requirement for unexploded ordnance program manager

Section 2701(k) of title 10, United States Code, is amended—

(1)

in paragraph (1)—

(A)

by striking establish and inserting designate; and

(B)

by inserting research, after characterization,;

(2)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (4); and

(3)

by inserting after paragraph (1) the following new paragraphs:

(2)

The position of program manager shall be filled by—

(A)

an employee in a position that is equivalent to pay grade O-6 or above; or

(B)

a member of the armed forces who is serving in the grade of colonel or, in the case of the Navy, captain, or in a higher grade.

(3)

The program manager shall report to the Deputy Under Secretary of Defense for Installations and Environment.

.

312.

Funding of cooperative agreements under environmental restoration program

Section 2701(d)(2) of title 10, United States Code, is amended by adding at the end the following new sentence: This two-year limitation does not apply to an agreement funded using amounts in the Department of Defense Base Closure Account 1990 or the Department of Defense Base Closure Account 2005 established under sections 2906 and 2906A of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note)..

313.

Response plan for remediation of unexploded ordnance, discarded military munitions, and munitions constituents

(a)

Performance Goals for Remediation

The Secretary of Defense shall set the following remediation goals with regard to unexploded ordnance, discarded military munitions, and munitions constituents:

(1)

To complete, by not later than September 30, 2007, preliminary assessments of unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites (other than operational ranges).

(2)

To complete, by not later than September 30, 2010, site inspections of unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites (other than operational ranges).

(3)

To achieve, by not later than September 30, 2009, a remedy in place or response complete for unexploded ordnance, discarded military munitions, and munitions constituents at all military installations closed or realigned as part of a round of defense base closure and realignment occurring prior to the 2005 round.

(4)

To achieve, by a date certain established by the Secretary of Defense, a remedy in place or response complete for unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites (other than operational ranges) and all military installations realigned or closed under the 2005 round of defense base closure and realignment.

(b)

Response Plan Required

(1)

In general

Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a comprehensive plan for addressing the remediation of unexploded ordnance, discarded military munitions, and munitions constituents at current and former defense sites (other than operational ranges).

(2)

Content

The plan required by paragraph (1) shall include—

(A)

a schedule, including interim goals, for achieving the goals described in paragraphs (1) through (3) of subsection (a), based upon the Munitions Response Site Prioritization Protocol established by the Department of Defense;

(B)

such interim goals as the Secretary determines feasible for efficiently achieving the goal required under paragraph (4) of such subsection; and

(C)

an estimate of the funding required to achieve the goals established pursuant to such subsection and the interim goals established pursuant to subparagraphs (A) and (B).

(3)

Updates

Not later than March 15 of 2008, 2009, and 2010, the Secretary shall submit to the congressional defense committees an update of the plan required under paragraph (1). The Secretary may include the update in the report on environmental restoration activities that is submitted to Congress under section 2706(a) of title 10, United States Code, in the year in which that update is required and may include in the update any adjustment to the remediation goals established under subsection (a) that the Secretary determines necessary to respond to unforeseen circumstances.

(c)

Report on Reuse Standards and Principles

Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the status of the efforts of the Department of Defense to achieve agreement with relevant regulatory agencies on appropriate reuse standards or principles, including—

(1)

a description of any standards or principles that have been agreed upon; and

(2)

a discussion of any issues that remain in disagreement, including the impact that any such disagreement is likely to have on the ability of the Department of Defense to carry out the response plan required by subsection (b).

(d)

Definitions

In this section:

(1)

The terms unexploded ordnance and operational range have the meanings given such terms in section 101(e) of title 10, United States Code.

(2)

The terms discarded military munitions, munitions constituents, and defense site have the meanings given such terms in section 2710(e) of such title.

The Secretary of Defense shall conduct a historical review of available records to determine the number, size, and probable locations of sites where the Armed Forces disposed of military munitions in coastal waters. The historical review shall, to the extent possible, identify the types of munitions at individual sites.

(2)

Cooperation

The Secretary shall request the assistance of the Coast Guard, the National Oceanic and Atmospheric Administration, and other relevant Federal agencies in conducting the review required by this subsection.

(3)

Interim reports

The Secretary shall periodically, but no less often than annually, release any new information obtained during the historical review conducted under paragraph (1). The Secretary may withhold from public release the exact nature and locations of munitions the potential unauthorized retrieval of which could pose a significant threat to the national defense or public safety.

(4)

Inclusion of information in annual report on environmental restoration activities

The Secretary shall include the information obtained pursuant to the review conducted under paragraph (1) in the annual report on environmental restoration activities submitted to Congress under section 2706 of title 10, United States Code.

(5)

Final report

The Secretary shall complete the historical review required under paragraph (1) and submit a final report on the findings of such review in the annual report on environmental restoration activities submitted to Congress for fiscal year 2009.

(b)

Identification of Navigational and Safety Hazards

(1)

Identification of hazards

The Secretary of Defense shall provide available information to the Secretary of Commerce to assist the National Oceanic and Atmospheric Administration in preparing nautical charts and other navigational materials for coastal waters that identify known or potential hazards posed by disposed military munitions to private activities, including commercial shipping and fishing operations.

(2)

Continuation of information activities

The Secretary of Defense shall continue activities to inform potentially affected users of the ocean environment, particularly fishing operations, of the possible hazards from contact with disposed military munitions and the proper methods to mitigate such hazards.

(c)

Research

(1)

In general

The Secretary of Defense shall continue to conduct research on the effects on the ocean environment and those who use it of military munitions disposed of in coastal waters.

(2)

Scope

Research under paragraph (1) shall include—

(A)

the sampling and analysis of ocean waters and sea beds at or adjacent to military munitions disposal sites selected pursuant to paragraph (3) to determine whether the disposed military munitions have caused or are causing contamination of such waters or sea beds;

(B)

investigation into the long-term effects of seawater exposure on disposed military munitions, particularly effects on chemical munitions;

(C)

investigation into the impacts any such contamination may have on the ocean environment and those who use it, including public health risks;

(D)

investigation into the feasibility of removing or otherwise remediating the military munitions; and

(E)

the development of effective safety measures for dealing with such military munitions.

(3)

Research criteria

In conducting the research required by this subsection, the Secretary shall ensure that the sampling, analysis, and investigations are conducted at representative sites, taking into account factors such as depth, water temperature, nature of the military munitions present, and relative proximity to onshore populations. In conducting such research, the Secretary shall select at least two representative sites each in the areas of the Atlantic coast, the Pacific coast (including Alaska), and the Hawaiian Islands.

(4)

Authority to make grants and enter into cooperative agreements

In conducting research under this subsection, the Secretary may make grants to, and enter into cooperative agreements with, qualified research entities.

(d)

Monitoring

If the historical review required by subsection (a) or the research required by subsection (c) indicates that contamination is being released into the ocean waters from disposed military munitions at a particular site or that the site poses a significant public health or safety risk, the Secretary of Defense shall institute appropriate monitoring mechanisms at that site and report to the congressional defense committees on any additional measures that may be necessary to address the release or risk, as applicable.

(e)

Definitions

In this section:

(1)

The term coastal waters means that part of the ocean extending from the coast line of the United States to the outer boundary of the outer Continental Shelf.

(2)

The term coast line has the meaning given that term in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).

(3)

The term military munitions has the meaning given that term in section 101(e) of title 10, United States Code.

(4)

The term outer Continental Shelf has the meaning given that term in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)).

Using funds described in subsection (b), the Secretary of Defense may transfer not more than $111,114.03 to the Moses Lake Wellfield Superfund Site 10–6J Special Account.

(2)

Purpose of reimbursement

The payment under paragraph (1) is to reimburse the Environmental Protection Agency for its costs incurred in overseeing a remedial investigation/feasibility study performed by the Department of the Army under the Defense Environmental Restoration Program at the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington.

(3)

Interagency agreement

The reimbursement described in paragraph (2) is provided for in the interagency agreement entered into by the Department of the Army and the Environmental Protection Agency for the Moses Lake Wellfield Superfund Site in March 1999.

(b)

Source of Funds

Any payment under subsection (a) shall be made using funds authorized to be appropriated by section 301(17) for operation and maintenance for Environmental Restoration, Formerly Used Defense Sites.

(c)

Use of Funds

The Environmental Protection Agency shall use the amount transferred under subsection (a) to pay costs incurred by the Agency at the Moses Lake Wellfield Superfund Site.

Subject to subsection (c), the Secretary of the Army shall transport to an authorized disposal facility for appropriate disposal all of the Government-furnished uranium in the chemical and physical form in which it is stored at the Sequoyah Fuels Corporation site in Gore, Oklahoma.

(b)

Source of Funds

Funds authorized to be appropriated pursuant to section 301(1) for operation and maintenance for the Army may be used for the transport and disposal required under subsection (a).

(c)

Liability

The Secretary may only transport uranium under subsection (a) after receiving from Sequoyah Fuels Corporation a written agreement satisfactory to the Secretary that provides that—

(1)

the United States assumes no liability, legal or otherwise, of Sequoyah Fuels Corporation by transporting the uranium; and

(2)

the Sequoyah Fuels Corporation waives any and all claims it may have against the United States related to the transported uranium.

(d)

Completion of Transport

The Secretary shall complete the transport of uranium under subsection (a) not later than March 31, 2007.

317.

Extension of authority to grant exemptions to certain requirements

(a)

Amendment to toxic substances control act

Section 6(e)(3) of the Toxic Substances Control Act (15 U.S.C. 2605(e)(3)) is amended—

(1)

in subparagraph (A), by striking subparagraphs (B) and (C) and inserting subparagraphs (B), (C), and (D);

(2)

in subparagraph (B), by striking but not more than one year from the date it is granted and inserting but not more than 1 year from the date it is granted, except as provided in subparagraph (D); and

(3)

by adding at the end the following new subparagraph:

(D)

The Administrator may extend an exemption granted pursuant to subparagraph (B) that has not yet expired for a period not to exceed 60 days for the purpose of authorizing the Secretary of Defense and the Secretaries of the military departments to provide for the transportation into the customs territory of the United States of polychlorinated biphenyls generated by or under the control of the Department of Defense for purposes of their disposal, treatment, or storage in the customs territory of the United States if those polychlorinated biphenyls are already in transit from their storage locations but the Administrator determines, in the sole discretion of the Administrator, they would not otherwise arrive in the customs territory of the United States within the period of the original exemption. The Administrator shall promptly publish notice of such extension in the Federal Register.

.

(b)

Sunset date

The amendments made by subsection (a) shall cease to have effect on September 30, 2012. The termination of the authority to grant exemptions pursuant to such amendments shall not effect the validity of any exemption granted prior to such date.

(c)

Report

Not later than March 1, 2011, the Secretary of Defense shall submit to the Committee on Armed Services and the Committee on Environment and Public Works of the Senate and the Committee on Armed Services and the Committee on Energy and Commerce of the House of Representatives a report on the status of foreign-manufactured polychlorinated biphenyls under the control of the Department of Defense outside the United States. The report shall address, at a minimum—

(1)

the remaining volume of such foreign-manufactured polychlorinated biphenyls that may require transportation into the customs territory of the United States for disposal, treatment, or storage; and

(2)

the efforts that have been made by the Department of Defense and other Federal agencies to reduce such volume by—

(A)

reducing the volume of foreign-manufactured polychlorinated biphenyls under the control of the Department of Defense outside the United States; or

(B)

developing alternative options for the disposal, treatment, or storage of such foreign-manufactured polychlorinated biphenyls.

318.

National Academy of Sciences study on human exposure to contaminated drinking water at Camp Lejeune, North Carolina

(a)

Study Required

(1)

In general

Not later than 60 days after the date of the enactment of this Act, the Secretary of the Navy shall enter into an agreement with the National Academy of Sciences to conduct a comprehensive review and evaluation of the available scientific and medical evidence regarding associations between pre-natal, child, and adult exposure to drinking water contaminated with trichloroethylene (TCE) and tetrachloroethylene (PCE) at Camp Lejeune, North Carolina, as well as other pre-natal, child, and adult exposures to levels of trichloroethylene and tetrachloroethylene similar to those experienced at Camp Lejeune, and birth defects or diseases and any other adverse health effects.

(2)

Elements

In conducting the review and evaluation, the Academy shall review and summarize the scientific and medical evidence and assess the strength of that evidence in establishing a link or association between exposure to trichloroethylene and tetrachloroethylene and each birth defect or disease suspected to be associated with such exposure. For each birth defect or disease reviewed, the Academy shall determine, to the extent practicable with available scientific and medical data, whether—

(A)

a statistical association with such contaminant exposures exists; and

(B)

there exist plausible biological mechanisms or other evidence of a causal relationship between contaminant exposures and the birth defect or disease.

(3)

Scope of review

In conducting the review and evaluation, the Academy shall include a review and evaluation of—

(A)

the toxicologic and epidemiologic literature on adverse health effects of trichloroethylene and tetrachloroethylene, including epidemiologic and risk assessment reports from government agencies;

(B)

recent literature reviews by the National Research Council, Institute of Medicine, and other groups;

(C)

the completed and on-going Agency for Toxic Substances Disease Registry (ATSDR) studies on potential trichloroethylene and tetrachloroethylene exposure at Camp Lejeune; and

(D)

published meta-analyses.

(4)

Peer review

The Academy shall obtain the peer review of the report prepared as a result of the review and evaluation under applicable Academy procedures.

(5)

Submittal

The Academy shall submit the report prepared as a result of the review and evaluation to the Secretary and Congress not later than 18 months after entering into the agreement for the review and evaluation under paragraph (1).

(b)

Notice on Exposure

(1)

Notice required

Upon completion of the current epidemiological study by the Agency for Toxic Substances Disease Registry, known as the Exposure to Volatile Organic Compounds in Drinking Water and Specific Birth Defects and Childhood Cancers, United States Marine Corps Base Camp Lejeune, North Carolina, the Commandant of the Marine Corps shall take appropriate actions, including the use of national media such as newspapers, television, and the Internet, to notify former Camp Lejeune residents and employees who may have been exposed to drinking water impacted by trichloroethylene and tetrachloroethylene of the results of the study.

(2)

Elements

The information provided by the Commandant of the Marine Corps under paragraph (1) shall be prepared in conjunction with the Agency for Toxic Substances Disease Registry and shall include a description of sources of additional information relating to such exposure, including, but not be limited to, the following:

(A)

A description of the events resulting in exposure to contaminated drinking water at Camp Lejeune.

(B)

A description of the duration and extent of the contamination of drinking water at Camp Lejeune.

(C)

The known and suspected health effects of exposure to the drinking water impacted by trichloroethylene and tetrachloroethylene at Camp Lejeune.

C

Program Requirements, Restrictions, and Limitations

321.

Limitation on financial management improvement and audit initiatives within the Department of Defense

(a)

Limitation

The Secretary of Defense may not obligate or expend any funds for the purpose of any financial management improvement activity relating to the preparation, processing, or auditing of financial statements until the Secretary submits to the congressional defense committees a written determination that each activity proposed to be funded is—

(1)

consistent with the financial management improvement plan of the Department of Defense required by section 376(a)(1) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 190–163; 119 Stat. 3213); and

(2)

likely to improve internal controls or otherwise result in sustained improvements in the ability of the Department to produce timely, reliable, and complete financial management information.

(b)

Exception

The limitation in subsection (a) shall not apply to an activity directed exclusively at assessing the adequacy of internal controls and remediating any inadequacy identified pursuant to such assessment.

322.

Funds for exhibits for the national museums of the Armed Forces

(a)

National Museum of the United States Army

Of the amounts authorized to be appropriated by section 301(1) for operation and maintenance for the Army, not less than $3,000,000 may be available to the Secretary of the Army for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Army. The Secretary may enter into a contract with the Army Historical Foundation for the purpose of performing such acquisition, installation, and maintenance.

(b)

National Museum of the United States Navy

Of the amounts authorized to be appropriated by section 301(2) for operation and maintenance for the Navy, not less than $3,000,000 may be available to the Secretary of the Navy for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Navy. The Secretary may enter into a contract with the Naval Historical Foundation for the purpose of performing such acquisition, installation, and maintenance.

(c)

National Museum of the Marine Corps and Heritage Center

Of the amounts authorized to be appropriated by section 301(3) for operation and maintenance for the Marine Corps, not less than $3,000,000 may be available to the Secretary of the Navy for the acquisition, installation, and maintenance of exhibits at the National Museum of the Marine Corps and Heritage Center. The Secretary may enter into a contract with the United States Marine Corps Heritage Foundation for the purpose of performing such acquisition, installation, and maintenance.

(d)

National Museum of the United States Air Force

Of the amounts authorized to be appropriated by section 301(4) for operation and maintenance for the Air Force, not less than $3,000,000 may be available to the Secretary of the Air Force for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Air Force. The Secretary may enter into a contract with the Air Force Museum Foundation for the purpose of performing such acquisition, installation, and maintenance.

(e)

Reimbursement

(1)

Authority to accept reimbursement

After September 30, 2006, the Secretary of a military department may accept funds from any non-profit entity authorized to support the national museum of the applicable Armed Force to reimburse the Secretary for amounts obligated and expended by the Secretary from amounts made available to the Secretary under this section.

(2)

Treatment

Amounts accepted as reimbursement under paragraph (1) shall be credited to the account that was used to cover the costs for which the reimbursement was provided. Amounts so credited shall be merged with amounts in that account, and shall be available for the same purposes, and subject to the same conditions and limitations, as other amounts in that account.

323.

Prioritization of funds for equipment readiness and strategic capability

(a)

Prioritization of funds

The Secretary of Defense shall take such steps as may be necessary through the planning, programming, budgeting, and execution systems of the Department of Defense to ensure that financial resources are provided for each fiscal year as necessary to enable—

(1)

the Secretary of each military department to meet the requirements of that military department for that fiscal year for the repair, recapitalization, and replacement of equipment used in the global war on terrorism; and

(2)

the Secretary of the Army to meet the requirements of the Army for that fiscal year, in addition to the requirements under paragraph (1), for—

(A)

the fulfillment of the equipment requirements of units transforming to modularity in accordance with the Modular Force Initiative report submitted to Congress in March 2006; and

(B)

the reconstitution of equipment and materiel in prepositioned stocks in accordance with requirements under the Army Prepositioned Stocks Strategy 2012 or a subsequent strategy implemented under the guidelines in section 2229 of title 10, United States Code.

(b)

Submission of budget information

(1)

Submission of information

As part of the budget justification materials submitted to Congress in support of the President’s budget for a fiscal year or a request for supplemental appropriations, the Secretary of Defense shall include the following:

(A)

The information described in paragraph (2) for the fiscal year for which the budget justification materials are submitted, the fiscal year during which the materials are submitted, and the preceding fiscal year.

(B)

The information described in paragraph (2) for each of the fiscal years covered by the future-years defense program for the fiscal year in which the report is submitted based on estimates of any amounts required to meet each of the requirements under subsection (a) that are not met for that fiscal year and are deferred to the future-years defense program.

(C)

A consolidated budget justification summary of the information submitted under subparagraphs (A) and (B).

(2)

Information described

The information described in this paragraph is information that clearly and separately identifies, by appropriations account, budget activity, activity group, sub-activity group, and program element or line item, the amounts requested for the programs, projects, and activities of—

(A)

each of the military departments for the repair, recapitalization, or replacement of equipment used in the global war on terrorism; and

(B)

the Army for—

(i)

the fulfillment of the equipment requirements of units transforming to modularity; and

(ii)

the reconstitution of equipment and materiel in prepositioned stocks.

(3)

Additional information in first report

As part of the budget justification materials submitted to Congress in support of the President’s budget for fiscal year 2008, the Secretary of Defense shall also include the information described in paragraph (2) for fiscal years 2003, 2004, and 2005.

(c)

Annual report on Army progress

On the date on which the President submits to Congress the budget for a fiscal year under section 1105 of title 31, United States Code, the Secretary of the Army shall submit to the congressional defense committees a report setting forth the progress of the Army in meeting the requirements of subsection (a). Any information required to be included in the report concerning funding priorities under paragraph (1) or (2) of subsection (a) shall be itemized by active duty component and reserve component. Each such report shall include the following:

(1)

A complete itemization of the requirements for the funding priorities in subsection (a), including an itemization for all types of modular brigades and an itemization for the replacement of equipment withdrawn or diverted from the reserve component for use in the global war on terrorism.

(2)

A list of any shortfalls that exist between available funding, equipment, supplies, and industrial capacity and required funding, equipment, supplies, and industrial capacity in accordance with the funding priorities in subsection (a).

(3)

A list of the requirements for the funding priorities in subsection (a) that the Army has included in the budget for that fiscal year, including a detailed listing of the type, quantity, and cost of the equipment the Army plans to repair, recapitalize, or procure, set forth by appropriations account and Army component.

(4)

An assessment of the progress made during that fiscal year toward meeting the overall requirements of the funding priorities in subsection (a).

(5)

A schedule for meeting the requirements of subsection (a).

(6)

A description of how the Army defines costs associated with modularity versus the costs associated with modernizing equipment platforms and the reset (repair, recapitalization, or replacement) of equipment used during the global war on terrorism, including the funding expended on, and the future funding required for, such reset requirements.

(7)

A complete itemization of the amount of funds expended to date on the modular brigades.

(8)

The results of Army assessments of modular force capabilities, including lessons learned from existing modular units and any modifications that have been made to modularity.

(9)

The comments of the Chief of the National Guard Bureau and the Chief of the Army Reserve on each of the items described in paragraphs (1) through (8).

(d)

Annual Comptroller General report on Army progress

Not later than 45 days after the date on which the President submits to Congress the budget for a fiscal year under section 1105 of title 31, United States Code, the Comptroller General shall submit to the congressional defense committees a report containing the assessment of the Comptroller General on the following:

(1)

The progress of the Army in meeting the requirements of subsection (a), including progress in equipping and manning modular units in the regular components and reserve components of the Armed Forces.

(2)

The use of funds by the Army for meeting the requirements of subsection (a).

(3)

The progress of the Army in conducting further testing and evaluations of designs under the modularity initiative.

(e)

Termination of report requirements

The requirement for the submission of a report under subsection (c) or (d) shall terminate on the date of the submission of the report required to be submitted under that subsection to accompany or follow the President’s budget submission for fiscal year 2012.

324.

Limitation on deployment of Marine Corps Total Force System to Navy

(a)

Limitation

The Secretary of the Navy may not deploy the Marine Corps Total Force System (MCTFS) (or any derivative system of the MCTFS) to the Navy until the date on which the congressional defense committees and the Secretary of the Navy receive the written determination of the Chairman of the Defense Business Systems Management Committee submitted under subsection (d) that the deployment of the MCTFS to the Navy is in the best interests of the Department of Defense.

(b)

Report required

Not later than 180 days after the date of the enactment of this Act, the Secretary of the Navy shall submit to the congressional defense committees and the Comptroller General a report on the Marine Corps Total Force System (MCTFS). The report shall include the following:

(1)

An analysis of alternatives to the MCTFS, including a detailed comparison between the cost of deploying and operating the MCTFS within the Navy and the cost of including the Navy in the Defense Integrated Military Human Resources System.

(2)

A business case analysis, including an analysis of the costs and benefits to both the Department of the Navy and the Department of Defense of the alternatives to the MCTFS considered under the analysis required by paragraph (1).

(3)

An analysis of the compatibility of the MCTFS with the enterprise architecture of the Department of Defense, including a detailed estimate of all interface costs with current or planned Department-wide military manpower, personnel, and pay information technology systems.

(c)

Comptroller General assessment

Not later than 90 days after the date on which the Comptroller General receives the report submitted under subsection (b), the Comptroller General shall submit to the congressional defense committees and to the Chairman of the Defense Business Systems Management Committee a written assessment of the report.

(d)

Determination of Chairman of Defense Business Systems Management Committee

Not sooner than 120 days after the date on which the Comptroller General receives the report submitted under subsection (b), the Chairman of the Defense Business Systems Management Committee shall review the analysis included in the report, together with any other relevant information available to the Chairman, and submit to the congressional defense committees and the Secretary of the Navy the written determination of the Chairman of whether the deployment of the MCTFS to the Navy is in the best interests of the Department of Defense.

D

Workplace and Depot Issues

331.

Permanent exclusion of certain contract expenditures from percentage limitation on the performance of depot-level maintenance

(a)

Permanent exclusion

Section 2474(f) of title 10, United States Code, is amended—

(1)

by striking (1) Amounts and inserting Amounts;

(2)

by striking entered into during fiscal years 2003 through 2009; and

(3)

by striking paragraph (2).

(b)

Inclusion of certain items in annual report

(1)

Inclusion of certain items

Paragraph (2) of section 2466(d) of such title is amended to read as follows:

(2)

Each report required under paragraph (1) shall include as a separate item any expenditure covered by section 2474(f) of this title that was made during the fiscal year covered by the report and shall specify the amount and nature of each such expenditure.

.

(2)

Conforming amendment

The heading for subsection (d) of section 2466 of such title is amended to read as follows: Annual report.—.

332.

Minimum capital investment for certain depots

(a)

Minimum investment levels

Chapter 146 of title 10, United States Code, is amended by adding at the end the following new section:

2476.

Minimum capital investment for certain depots

(a)

Minimum investment

Each fiscal year, the Secretary of a military department shall invest in the capital budgets of the covered depots of that military department a total amount equal to not less than six percent of the average total combined workload funded at all the depots of that military department for the preceding three fiscal years.

(b)

Capital budget

For purposes of this section, the capital budget of a depot includes investment funds spent on depot infrastructure, equipment, and process improvement in direct support of depot operations.

(c)

Waiver

The Secretary of Defense may waive the requirement under subsection (a) with respect to a military department for a fiscal year if the Secretary determines that the waiver is necessary for reasons of national security. Whenever the Secretary makes such a waiver, the Secretary shall notify the congressional defense committees of the waiver and the reasons for the waiver.

(d)

Annual report

(1)

Not later than 45 days after the date on which the President submits to Congress the budget for a fiscal year under section 1105 of title 31, the Secretary of Defense shall submit to the congressional defense committees a report containing budget justification documents summarizing the level of capital investment for each military department as of the end of the preceding fiscal year.

(2)

Each report submitted under paragraph (1) shall include the following:

(A)

A specification of any statutory, regulatory, or operational impediments to achieving the requirement under subsection (a) with respect to each military department.

(B)

A description of the benchmarks for capital investment established for each covered depot and military department and the relationship of the benchmarks to applicable performance measurement methods used in the private sector.

(C)

If the requirement under subsection (a) is not met for a military department for the fiscal year covered by the report, a statement of the reasons why the requirement was not met and a plan of actions for meeting the requirement for the fiscal year beginning in the year in which such report is submitted.

(e)

Covered depot

In this section, the term covered depot means any of the following:

(1)

With respect to the Department of the Army:

(A)

Anniston Army Depot, Alabama.

(B)

Letterkenny Army Depot, Pennsylvania.

(C)

Tobyhanna Army Depot, Pennsylvania.

(D)

Corpus Christi Army Depot, Texas.

(E)

Red River Army Depot, Texas.

(2)

With respect to the Department of the Navy:

(A)

Fleet Readiness Center East Site, Cherry Point, North Carolina.

(B)

Fleet Readiness Center Southwest Site, North Island, California.

(C)

Fleet Readiness Center Southeast Site, Jacksonville, Florida.

(D)

Portsmouth Naval Shipyard, Maine.

(E)

Pearl Harbor Naval Shipyard, Hawaii.

(F)

Puget Sound Naval Shipyard, Washington.

(G)

Norfolk Naval Shipyard, Virginia.

(H)

Marine Corps Logistics Base, Albany, Georgia.

(I)

Marine Corps Logistics Base, Barstow, California.

(3)

With respect to the Department of the Air Force:

(A)

Warner-Robins Air Logistics Center, Georgia.

(B)

Ogden Air Logistics Center, Utah.

(C)

Oklahoma City Air Logistics Center, Oklahoma.

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

2476. Minimum capital investment for certain depots.

.

(c)

Effective date

Section 2476 of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 2006.

(d)

Two year phase-in for Departments of the Army and the Navy

(1)

Reduced percentage of required investment for fiscal years 2007 and 2008

The Secretary of the Army shall apply subsection (a) of section 2476 of title 10, United States Code, as added by subsection (a), to the covered depots of the Army, and the Secretary of the Navy shall apply such subsection to the covered depots of the Department of the Navy—

(A)

for fiscal year 2007, by substituting four percent for six percent; and

(B)

for fiscal year 2008, by substituting five percent for six percent.

(2)

Covered depots

In this subsection, the term covered depot has the meaning given that term in subsection (e) of section 2476 of title 10, United States Code, as added by subsection (a).

Section 332(c) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314) is amended—

(1)

by striking September 30, 2007 both places it appears and inserting September 30, 2009;

(2)

by redesignating subsection (d) as subsection (e); and

(3)

by inserting after subsection (c) the following new subsection (d):

(d)

Limitation

The total number of personnel employed to perform security guard functions under all contracts entered into pursuant to this section shall not exceed—

(1)

for fiscal year 2007, the total number of such personnel employed under such contracts on October 1, 2006;

(2)

for fiscal year 2008, the number equal to 90 percent of the total number of such personnel employed under such contracts on October 1, 2006; and

(3)

for fiscal year 2009, the number equal to 80 percent of the total number of such personnel employed under such contracts on October 1, 2006.

.

(b)

Report on contractor performance of security-guard functions

Not later than February 1, 2007, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on contractor performance of security guard functions under section 332 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314). The report shall include the following:

(1)

An explanation of progress made toward implementing each of the seven recommendations in the Comptroller General report entitled “Contract Security Guards: Army’s Guard Program Requires Greater Oversight and Reassessment of Acquisition Approach” (GAO-06-284).

(2)

An assessment, taking into consideration the observations made by the Comptroller General on the report of the Department of Defense of November 2005 that is entitled Department of Defense Installation Security Guard Requirement Assessment and Plan, of the following:

(A)

The cost-effectiveness of using contractors rather than Department of Defense employees to perform security-guard functions.

(B)

The performance of contractors employed as security guards compared with the performance of military personnel who have served as security guards.

(C)

Specific results of on-site visits made by officials designated by the Secretary of Defense to military installations using contractors to perform security-guard functions.

(c)

Contract limitation

No contract may be entered into under section 332 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314) after September 30, 2007, until the report required under subsection (b) is submitted.

E

Reports

341.

Report on Navy Fleet Response Plan

(a)

Report required

Not later than December 1, 2006, the Secretary of the Navy shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the program of the Navy referred to as the Fleet Response Plan. The report shall include the following:

(1)

A directive that provides guidance for the conduct of the Plan and standardizes terms and definitions.

(2)

Performance measures for evaluation of the Plan.

(3)

Costs and resources needed to achieve objectives of the Plan, including any incremental effect on the Navy Operation and Maintenance budget.

(4)

Operational tests, exercises, war games, experiments, and deployments used to test performance.

(5)

A collection and synthesis of lessons learned from the implementation of the Plan as of the date on which the report is submitted.

(6)

Evaluation of each of the following with respect to each ship participating in the Plan:

Professional development training requirements accomplished during a deployment and at home station.

(D)

Crew retention statistics.

(7)

Any proposed changes to the Surface Force Training Manual.

(8)

The amount of funding required to effectively implement the operation and maintenance requirements of the Plan by ship class.

(9)

Any recommendations of the Secretary of the Navy with respect to expanding the Plan to include Expeditionary Strike Groups.

(b)

Comptroller general report

Not later than 120 days after the date on which the Secretary of the Navy submits the report required under subsection (a), the Comptroller General shall submit to the congressional defense committees a report containing a review of the report required under that subsection. The Comptroller General’s report shall include the following:

(1)

An examination of the management approaches of the Navy in implementing the Fleet Response Plan.

(2)

An assessment of the adequacy of Navy directives and guidance with respect to maintenance and training requirements and procedures.

(3)

An analysis and assessment of the adequacy of the Navy’s evaluation criteria for the Plan.

(4)

An evaluation of Navy data on aircraft carriers, destroyers, and cruisers that participated in the Plan with respect to readiness, response time, and availability for routine or unforeseen deployments.

(5)

An assessment of the Navy’s progress in identifying the amount of funding required to effectively implement the operations and maintenance requirements of the Plan and the effect of providing funding in an amount less than that amount.

(6)

Any recommendations of the Comptroller General with respect to expanding the Plan to include Expeditionary Strike Groups.

(c)

Postponement of expansion

The Secretary of the Navy may not expand the implementation of the Fleet Response Plan beyond the Carrier Strike Groups until the date that is six months after the date on which the Secretary of the Navy submits the report required under subsection (a).

342.

Report on Navy surface ship rotational crew programs

(a)

Report required

Not later than April 1, 2007, the Secretary of the Navy shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the ship rotational crew experiment referred to in subsection (c)(1). The report shall include the following:

(1)

A comparison between the three destroyers participating in that experiment and destroyers not participating in the experiment that takes into consideration each of the following:

(A)

Cost-effectiveness, including a comparison of travel and per diem expenses, maintenance costs, and other costs.

(B)

Maintenance procedures, impacts, and deficiencies, including the number and characterization of maintenance deficiencies, the extent of voyage repairs, post-deployment assessments of the material condition of the ships, and the extent to which work levels were maintained.

(C)

Mission training requirements.

(D)

Professional development requirements and opportunities.

(E)

Liberty port of call opportunities.

(F)

Movement and transportation of crew.

(G)

Inventory and property accountability.

(H)

Policies and procedures for assigning billets for rotating crews.

(I)

Crew retention statistics.

(J)

Readiness and mission capability data.

(2)

Results from surveys administered or focus groups held to obtain representative views from commanding officers, officers, and enlisted members on the effects of rotational crew experiments on quality of life, training, professional development, maintenance, mission effectiveness, and other issues.

(3)

The extent to which standard policies and procedures were developed and used for participating ships.

(4)

Lessons learned from the experiment.

(5)

An assessment from the combatant commanders on the crew mission performance when deployed.

(6)

An assessment from the commander of the Fleet Forces Command on the material condition, maintenance, and crew training of each participating ship.

(7)

Any recommendations of the Secretary of the Navy with respect to the extension of the ship rotational crew experiment or the implementation of the experiment for other surface vessels.

(b)

Postponement of implementation

The Secretary of the Navy may not begin implementation of any new surface ship rotational crew experiment or program during the period beginning on the date of the enactment of this Act and ending on October 1, 2009.

(c)

Treatment of existing experiments

(1)

Destroyer experiment

Not later than January 1, 2007, the Secretary of the Navy shall terminate the existing ship rotational crew experiment involving the U.S.S. Gonzalez (DDG-66), the U.S.S. Stout (DDG-55), and the U.S.S. Laboon (DDG-58) that is known as the sea swap.

(2)

Patrol Coastal class ship experiment

The Secretary of the Navy may continue the existing ship rotational crew program that is currently in use by overseas-based Patrol Coastal class ships.

(3)

Mine Countermeasures Ships

The Secretary of the Navy may continue the existing ship rotational crew program that is currently in use by MCM and MHC ships.

(4)

Littoral Combat Ships

The Secretary of the Navy may employ a two crew for one ship (commonly referred to as Blue-Gold) rotational crew program for the first two ships of each Littoral combat ship design (LCS 1-4).

(d)

Comptroller General report

Not later than July 15, 2007, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the ship rotational crew experiment referred to in subsection (c)(1). The report shall include the following:

(1)

A review of the report submitted by the Secretary of the Navy under subsection (a) and an assessment of the extent to which the Secretary fully addressed costs, quality of life, training, maintenance, and mission effectiveness, and other relevant issues in that report.

(2)

An assessment of the extent to which the Secretary established and applied a comprehensive framework for assessing the use of ship rotational crew experiments, including formal objectives, metrics, and methodology for assessing the cost-effectiveness of such experiments.

(3)

An assessment of the extent to which the Secretary established effective guidance for the use of ship rotational crew experiments.

(4)

Lessons learned from recent ship rotational crew experiments and an assessment of the extent to which the Navy systematically collects and shares lessons learned.

(e)

Congressional Budget Office report

Not later than July 15, 2007, the Director of the Congressional Budget Office shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the long-term implications of the use of crew rotation on Navy ships on the degree of forward presence provided by Navy ships. The report shall include the following:

(1)

An analysis of different approaches to crew rotation and the degree of forward presence each approach would provide.

(2)

A comparison of the degree of forward presence provided by the fleet under the long-term shipbuilding plan of the Navy with and without the widespread use of crew rotation.

(3)

The long-term benefits and costs of using crew rotation on Navy ships.

343.

Report on Army live-fire ranges in Hawaii

Not later than March 1, 2007, the Secretary of the Army shall submit to Congress a report on the adequacy of the live-fire ranges of the Army in the State of Hawaii with respect to current and future training requirements. The report shall include the following:

(1)

An evaluation of the capacity of the existing live-fire ranges to meet the training requirements of the Army, including the training requirements of Stryker Brigade Combat Teams.

(2)

A description of any existing plan to modify or expand any range in Hawaii for the purpose of meeting anticipated live-fire training requirements.

(3)

A description of the current live-fire restrictions at the Makua Valley range and the effect of these restrictions on unit readiness.

(4)

Cost and schedule estimates for the construction of new ranges or the modification of existing ranges that are necessary to support future training requirements if existing restrictions on training at the Makua Valley range remain in place.

344.

Comptroller General report on joint standards and protocols for access control systems at Department of Defense installations

(a)

Report required

Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report containing the assessment of the Comptroller General of—

(1)

the extent to which consistency exists in standards, protocols, and procedures for access control across installations of the Department of Defense; and

(2)

whether the establishment of joint standards and protocols for access control at such installations would be likely to—

(A)

address any need of the Department identified by the Comptroller General; or

(B)

improve access control across such installations by providing greater consistency and improved force protection.

(b)

Issues to be assessed

In conducting the assessment required by subsection (a), the Comptroller General shall assess the extent to which each installation of the Department of Defense has or would benefit from having an access control system with the ability to—

(1)

electronically check any identification card issued by any Federal agency or any State or local government within the United States, including any identification card of a visitor to the installation who is a citizen or legal resident of the United States;

(2)

verify that an identification card used to obtain access to the installation was legitimately issued and has not been reported lost or stolen;

(3)

check on a real-time basis all relevant watch lists maintained by the Government, including terrorist watch lists and lists of persons wanted by Federal, State, or local law enforcement authorities;

(4)

maintain a log of individuals seeking access to the installation and of individuals who are denied access to the installation; and

(5)

exchange information with any installation with a system that complies with the joint standards and protocols.

345.

Comptroller General report on readiness of Army and Marine Corps ground forces

(a)

Report required

(1)

In general

Not later than June 1, 2007, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the readiness of the active component and reserve component ground forces of the Army and the Marine Corps.

(2)

One or more reports

In complying with the requirements of this section, the Comptroller General may submit a single report addressing all the elements specified in subsection (b) or two or more reports addressing any combination of such elements. If the Comptroller General submits more than one report under this section, all such reports shall be submitted not later than the date specified in paragraph (1).

(b)

Elements

The elements specified in this subsection are the following:

(1)

An analysis of the current readiness status of each of the active component and reserve component ground forces of the Army and the Marine Corps, including a description of any major deficiency identified, an analysis of the trends in readiness of such forces during not less than the ten-year period preceding the date on which the report is submitted, and a comparison of the current readiness indicators of such ground forces with historical patterns.

(2)

An assessment of the ability of the Army and the Marine Corps to provide trained and ready forces for ongoing operations as well as other commitments assigned to the Army and the Marine Corps in defense planning documents.

(3)

An analysis of the availability of equipment for training by units of the Army and the Marine Corps in the United States in configurations comparable to the equipment being used by units of the Army and the Marine Corps, as applicable, in ongoing operations.

(4)

An analysis of the current and projected requirements for repair or replacement of equipment of the Army and the Marine Corps due to ongoing operations and the effect of such required repair or replacement of equipment on the availability of equipment for training.

(5)

An assessment of the current personnel tempo of Army and Marine Corps forces, including—

(A)

a comparison of such tempos to historical trends;

(B)

an identification of particular occupational specialties that are experiencing unusually high or low deployment rates; and

(C)

an analysis of retention rates in the occupational specialties identified under subparagraph (B).

(6)

An assessment of the efforts of the Army and the Marine Corps to mitigate the impact of high operational tempos, including cross-leveling of personnel and equipment or cross training of personnel or units for new or additional mission requirements.

(7)

A description of the current policy of the Army and the Marine Corps with respect to the mobilization of reserve component personnel, together with an analysis of the number of reserve component personnel in each of the Army and the Marine Corps that are projected to be available for deployment under such policy.

(c)

Form of report

Any report submitted under subsection (a) shall be submitted in both classified and unclassified form.

Not later than February 15, 2007, the Secretary of the Air Force shall submit to the congressional defense committees a report on Air Force safety requirements for Air Force flight training operations at Pueblo Memorial Airport, Colorado.

(b)

Elements

The report required under subsection (a) shall include each of the following:

(1)

A description of the Air Force flying operations at Pueblo Memorial Airport, including the Initial Flight Screening program.

(2)

An assessment of the impact of Air Force operations at Pueblo Memorial Airport on non-Air Force activities at the airport.

(3)

A description of the requirements necessary at Pueblo Memorial Airport to ensure safe Air Force flying operations, including the continuous availability of fire protection, crash rescue, and other emergency response capabilities.

(4)

An assessment of the necessity of providing for a continuous fire-fighting capability at Pueblo Memorial Airport.

(5)

A description and analysis of any alternatives for Air Force flying operations at Pueblo Memorial Airport, including the cost and availability of any such alternatives.

(6)

A description of Air Force funding of fire-fighting and crash rescue support at Pueblo Memorial Airport through the services contract for the Initial Flight Screening program.

(7)

An assessment of whether Air Force funding is required to assist the City of Pueblo, Colorado, in meeting Air Force requirements for safe Air Force flight operations at Pueblo Memorial Airport, and if such funding is required, the plan of the Secretary of the Air Force to provide such funding to the city.

347.

Annual report on Personnel Security Investigations for Industry and National Industrial Security Program

(a)

Annual report required

The Secretary of Defense shall include in the budget justification documents submitted to Congress in support of the President’s budget for the Department of Defense for each fiscal year, a report on the future requirements of the Department of Defense with respect to the Personnel Security Investigations for Industry and the National Industrial Security Program of the Defense Security Service.

(b)

Contents of report

Each report required to be submitted under subsection (a) shall include the following:

(1)

The funding requirements of the personnel security clearance investigation program and ability of the Secretary of Defense to fund the program.

(2)

The size of the personnel security clearance investigation process backlog.

(3)

The length of the average delay for an individual case pending in the personnel security clearance investigation process.

(4)

Any progress made by the Secretary of Defense during the 12 months preceding the date on which the report is submitted toward implementing planned changes in the personnel security clearance investigation process.

(5)

A determination certified by the Secretary of Defense of whether the personnel security clearance investigation process has improved during the 12 months preceding the date on which the report is submitted.

(c)

Comptroller General report

Not later than 180 days after the Secretary of Defense submits the first report required under subsection (a), the Comptroller General shall submit to Congress a report that contains a review of such report. The Comptroller General’s report shall include the following:

(1)

The number of personnel security clearance investigations conducted during the period beginning on October 1, 1999, and ending on September 30, 2006.

(2)

The number of each type of security clearance granted during that period.

(3)

The unit cost to the Department of Defense of each security clearance granted during that period.

(4)

The amount of any fee or surcharge paid to the Office of Personnel Management as a result of conducting a personnel security clearance investigation.

(5)

A description of the procedures used by the Secretary of Defense to estimate the number of personnel security clearance investigations to be conducted during a fiscal year.

(6)

A description of any plan developed by the Secretary of Defense to reduce delays and backlogs in the personnel security clearance investigation process.

(7)

A description of any plan developed by the Secretary of Defense to adequately fund the personnel security clearance investigation process.

(8)

A description of any plan developed by the Secretary of Defense to establish a more stable and effective Personnel Security Investigations Program.

in subsections (a)(5) and (c)(2), by striking fiscal years 2005 through 2008 and inserting fiscal years 2005 through 2013; and

(2)

in subsection (d), by striking within 60 days of receiving a report and inserting within 90 days of receiving a report.

349.

Reports on withdrawal or diversion of equipment from reserve units for support of reserve units being mobilized and other units

(a)

Report required on withdrawal or diversion of equipment

Not later than 90 days after the date on which the Secretary concerned (as that term is defined in section 101(a)(9) of title 10, United States Code) withdraws or diverts equipment from any reserve component unit for the purpose of transferring such equipment to a reserve component unit that is ordered to active duty under section 12301, 12302, or 12304 of title 10, United States Code, or to an active component unit for the purpose of discharging the mission of the unit to which the equipment is diverted, the Secretary concerned shall submit to the Secretary of Defense a status report on such withdrawal or diversion of equipment.

(b)

Elements of status report

Each status report under subsection (a) shall include the following:

(1)

A plan to repair, recapitalize, or replace the equipment withdrawn or diverted within the unit from which it is being withdrawn or diverted.

(2)

In the case of equipment that is to remain in a theater of operations while the unit from which the equipment is withdrawn or diverted leaves the theater of operations, a plan to provide that unit with equipment appropriate to ensure the continuation of the readiness training of the unit.

(3)

A signed memorandum of understanding between the active or reserve component to which the equipment is diverted and the reserve component from which the equipment is withdrawn or diverted that specifies—

(A)

how the equipment will be accounted for; and

(B)

when the equipment will be returned to the component from which it was withdrawn or diverted.

(c)

Reports to Congress

Not later than 90 days after the date of the enactment of this Act and every 90 days thereafter, the Secretary of Defense shall submit to Congress all status reports submitted under subsection (a) during the 90-day period preceding the date on which the Secretary of Defense submits such reports.

(d)

Termination

This section shall terminate on the date that is five years after the date of the enactment of this Act.

F

Other Matters

351.

Department of Defense strategic policy on prepositioning of materiel and equipment

(a)

Strategic policy required

Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section:

2229.

Strategic policy on prepositioning of materiel and equipment

(a)

Policy required

The Secretary of Defense shall maintain a strategic policy on the programs of the Department of Defense for the prepositioning of materiel and equipment. Such policy shall take into account national security threats, strategic mobility, service requirements, and the requirements of the combatant commands.

(b)

Limitation of diversion of prepositioned materiel

The Secretary of a military department may not divert materiel or equipment from prepositioned stocks except—

(1)

in accordance with a change made by the Secretary of Defense to the policy maintained under subsection (a); or

(2)

for the purpose of directly supporting a contingency operation or providing humanitarian assistance under chapter 20 of this title.

(c)

Congressional notification

The Secretary of Defense may not implement or change the policy required under subsection (a) until the Secretary submits to the congressional defense committees a report describing the policy or change to the policy.

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

2229. Strategic policy on prepositioning of materiel and equipment.

.

(c)

Deadline for establishment of policy

(1)

Deadline

Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall establish the strategic policy on the programs of the Department of Defense for the prepositioning of materiel and equipment required under section 2229 of title 10, United States Code, as added by subsection (a).

(2)

Limitation on diversion of prepositioned materiel

During the period beginning on the date of the enactment of this Act and ending on the date on which the Secretary of Defense submits the report required under section 2229(c) of title 10, United States Code, on the policy referred to in paragraph (1), the Secretary of a military department may not divert materiel or equipment from prepositioned stocks except for the purpose of directly supporting a contingency operation or providing humanitarian assistance under chapter 20 of that title.

352.

Authority to make Department of Defense horses available for adoption

(a)

Inclusion of Department of Defense horses in existing authority

Section 2583 of title 10, United States Code, is amended—

(1)

in the section heading, by striking working dogs and inserting animals;

(2)

by striking working each place it appears;

(3)

by striking dog and dogs each place they appear and inserting animal and animals, respectively;

(4)

by striking dog’s in paragraphs (1) and (2) of subsection (a) and inserting animal’s;

(5)

by striking a dog’s adoptability in subsection (b) and inserting the adoptability of the animal; and

(6)

by adding at the end the following new subsection:

(g)

Military animal defined

In this section, the term military animal means the following:

(1)

A military working dog.

(2)

A horse owned by the Department of Defense.

.

(b)

Clerical amendment

The item relating to such section in the table of sections at the beginning of chapter 153 of such title is amended to read as follows:

2583. Military animals: transfer and adoption.

.

353.

Sale and use of proceeds of recyclable munitions materials

(a)

Establishment of program

Chapter 443 of title 10, United States Code, is amended by adding at the end the following new section:

4690.

Recyclable munitions materials: sale; use of proceeds

(a)

Authority for program

Notwithstanding section 2577 of this title, the Secretary of the Army may carry out a program to sell recyclable munitions materials resulting from the demilitarization of conventional military munitions without regard to chapter 5 of title 40 and use any proceeds in accordance with subsection (c).

(b)

Method of sale

The Secretary shall use competitive procedures to sell recyclable munitions materials under this section in a manner consistent with Federal procurement laws and regulations.

(c)

Proceeds

(1)

Proceeds from the sale of recyclable munitions materials under this section shall be credited to an account that is specified as being for Army ammunition demilitarization from funds made available for the procurement of ammunition, to be available only for reclamation, recycling, and reuse of conventional military munitions (including research and development and equipment purchased for such purpose).

(2)

Amounts credited under this subsection shall be available for obligation for the fiscal year during which the funds are so credited and for three subsequent fiscal years.

(d)

Regulations

The Secretary shall prescribe regulations to carry out the program established under this section. Such regulations shall be consistent and in compliance with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) and the regulations implementing that Act.

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

4690. Recyclable munitions materials: sale; use of proceeds.

.

354.

Recovery and transfer to Corporation for the Promotion of Rifle Practice and Firearms Safety of certain firearms, ammunition, and parts granted to foreign countries

(a)

Authority to recover; transfer to corporation

Subchapter II of chapter 407 of title 36, United States Code, is amended by inserting after section 40728 the following new section:

40728A.

Recovery of excess firearms, ammunition, and parts granted to foreign countries and transfer to corporation

(a)

Authority to recover

The Secretary of the Army may recover from any country to which rifles, ammunition, repair parts, or other supplies described in section 40731(a) of this title are furnished on a grant basis under the conditions imposed by section 505 of the Foreign Assistance Act of 1961 (22 U.S.C. 2314) any such rifles, ammunition, repair parts, or supplies that become excess to the needs of such country.

(b)

Cost of Recovery

(1)

Except as provided in paragraph (2), the cost of recovery of any rifles, ammunition, repair parts, or supplies under subsection (a) shall be treated as incremental direct costs incurred in providing logistical support to the corporation for which reimbursement shall be required as provided in section 40727(a) of this title.

(2)

The Secretary may require the corporation to pay costs of recovery described in paragraph (1) in advance of incurring such costs. Amounts so paid shall not be subject to the provisions of section 3302 of title 31, but shall be administered in accordance with the last sentence of section 40727(a) of this title.

(c)

Availability for transfer to corporation

Any rifles, ammunition, repair parts, or supplies recovered under subsection (a) shall be available for transfer to the corporation in accordance with section 40728 of this title under such additional terms and conditions as the Secretary shall prescribe for purposes of this section.

.

(b)

Clerical Amendment

The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 40728 the following new item:

40728A. Recovery of excess firearms, ammunition, and parts granted to foreign countries and transfer to corporation.

.

355.

Extension of Department of Defense telecommunications benefit program

(a)

Termination at end of contingency operation

Subsection (c) of section 344 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108–136) is amended to read as follows:

(c)

Termination of benefit

The authority to provide a benefit under subsection (a)(1) to a member directly supporting a contingency operation shall terminate on the date that is 60 days after the date on which the Secretary determines that the contingency operation has ended.

.

(b)

Application to other contingency operations

Such section is further amended—

(1)

in subsection (a), by striking Operation Iraqi Freedom and Operation Enduring Freedom and inserting a contingency operation; and

(2)

by adding at the end the following new subsection:

(g)

Contingency operation defined

In this section, the term contingency operation has the meaning given that term in section 101(a)(13) of title 10, United States Code. The term includes Operation Iraqi Freedom and Operation Enduring Freedom.

.

(c)

Extension to hospitalized members

Subsection (a) of such section is further amended—

(1)

by striking As soon as possible after the date of the enactment of this Act, the and inserting (1) The; and

(2)

by adding at the end the following new paragraph:

(2)

As soon as possible after the date of the enactment of the John Warner National Defense Authorization Act for Fiscal Year 2007, the Secretary shall provide, wherever practicable, prepaid phone cards, packet based telephony service, or an equivalent telecommunications benefit which includes access to telephone service to members of the Armed Forces who, although are no longer directly supporting a contingency operation, are hospitalized as a result of wounds or other injuries incurred while serving in direct support of a contingency operation.

.

(d)

Report on implementation of modified benefits

Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report describing the status of the efforts of the Department of Defense to implement the modifications of the Department of Defense telecommunications benefit required by section 344 of the National Defense Authorization Act for Fiscal Year 2004 that result from the amendments made by this section.

356.

Extension of availability of funds for commemoration of success of the Armed Forces in Operation Enduring Freedom and Operation Iraqi Freedom

Section 378(b)(2) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3214) is amended by striking fiscal year 2006 and inserting fiscal years 2006 and 2007.

357.

Capital security cost sharing

(a)

Reconciliation required

For each fiscal year, the Secretary of Defense shall reconcile (1) the estimate of overseas presence of the Secretary of Defense under subsection (b) for that fiscal year, with (2) the determination of the Secretary of State under section 604(e)(1) of the Secure Embassy Construction and Counterterrorism Act of 1999 (22 U.S.C. 4865 note) of the total overseas presence of the Department of Defense for that fiscal year.

(b)

Annual estimate of overseas presence

Not later than February 1 of each year, the Secretary of Defense shall submit to the congressional defense committees an estimate of the total number of Department of Defense overseas personnel subject to chief of mission authority pursuant to section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927) during the fiscal year that begins on October 1 of that year.

358.

Utilization of fuel cells as back-up power systems in Department of Defense operations

The Secretary of Defense shall consider the utilization of fuel cells as replacements for current back-up power systems in a variety of Department of Defense operations and activities, including in telecommunications networks, perimeter security, individual equipment items, and remote facilities, in order to increase the operational longevity of back-up power systems and stand-by power systems in such operations and activities.

359.

Improving Department of Defense support for civil authorities

(a)

Consultation

In the development of concept plans for the Department of Defense for providing support to civil authorities, the Secretary of Defense may consult with the Secretary of Homeland Security and State governments.

(b)

Prepositioning of Department of Defense assets

The Secretary of Defense may provide for the prepositioning of prepackaged or preidentified basic response assets, such as medical supplies, food and water, and communications equipment, in order to improve the ability of the Department of Defense to rapidly provide support to civil authorities. The prepositioning of basic response assets shall be carried out in a manner consistent with Department of Defense concept plans for providing support to civil authorities and section 2229 of title 10, United States Code, as added by section 351.

(c)

Reimbursement

To the extent required by section 1535 of title 31, United States Code, or other applicable law, the Secretary of Defense shall require that the Department of Defense be reimbursed for costs incurred by the Department in the prepositioning of basic response assets under subsection (b).

(d)

Military readiness

The Secretary of Defense shall ensure that the prepositioning of basic response assets under subsection (b) does not adversely affect the military preparedness of the United States.

(e)

Procedures and Guidelines

The Secretary may develop procedures and guidelines applicable to the prepositioning of basic response assets under subsection (b).

360.

Energy efficiency in weapons platforms

(a)

Policy

It shall be the policy of the Department of Defense to improve the fuel efficiency of weapons platforms, consistent with mission requirements, in order to—

(1)

enhance platform performance;

(2)

reduce the size of the fuel logistics systems;

(3)

reduce the burden high fuel consumption places on agility;

(4)

reduce operating costs; and

(5)

dampen the financial impact of volatile oil prices.

(b)

Report required

(1)

In general

Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the progress of the Department of Defense in implementing the policy established by subsection (a).

(2)

Elements

The report shall include the following:

(A)

An assessment of the feasibility of designating a senior Department of Defense official to be responsible for implementing the policy established by subsection (a).

(B)

A summary of the recommendations made as of the time of the report by—

(i)

the Energy Security Integrated Product Team established by the Secretary of Defense in April 2006;

(ii)

the Defense Science Board Task Force on Department of Defense Energy Strategy established by the Under Secretary of Defense for Acquisition, Technology and Logistics on May 2, 2006; and

the steps that the Department has taken to implement such recommendation;

(ii)

any additional steps the Department plans to take to implement such recommendation; and

(iii)

for any recommendation that the Department does not plan to implement, the reasons for the decision not to implement such recommendation.

(D)

An assessment of the extent to which the research, development, acquisition, and logistics guidance and directives of the Department for weapons platforms are appropriately designed to address the policy established by subsection (a).

(E)

An assessment of the extent to which such guidance and directives are being carried out in the research, development, acquisition, and logistics programs of the Department.

(F)

A description of any additional actions that, in the view of the Secretary, may be needed to implement the policy established by subsection (a).

361.

Prioritization of funds within Navy mission operations, ship maintenance, combat support forces, and weapons system support

(a)

Sense of Congress

It is the sense of Congress that—

(1)

the President’s budget for fiscal year 2007 failed to fund the required number of ship steaming days per quarter for Navy ship operations as well as deferring projected depot maintenance for Navy ships and aircraft; and

(2)

the Secretary of Defense should ensure that sufficient financial resources are provided for each fiscal year to support the critical training and depot maintenance accounts of the Navy in order to enable the Navy to maintain the current readiness levels required to support the national military strategy without putting future readiness at risk by underfunding investment in modernization, including ship construction programs.

(b)

Certification

The Secretary of Defense shall submit to the congressional defense committees a written certification, at the same time the President submits the budget for each of fiscal years 2008, 2009, and 2010, that the Navy has budgeted and programmed funding to fully meet the requirements for that fiscal year for each of the following:

(1)

Ship steaming days per quarter for deployed and non-deployed ship operations.

(2)

Projected depot maintenance requirements for ships and aircraft.

(c)

Limitation

Of the funds available for Operation and Maintenance, Defense-Wide, for the Office of the Secretary of Defense for each of fiscal years 2008, 2009, and 2010, no more than 80 percent may be obligated in that fiscal year until after the submission of the certification required by subsection (b) for the annual budget submitted in February of that year for the following fiscal year.

(d)

Annual report

Beginning with the fiscal year 2008 budget of the President, the Secretary of the Navy shall submit to the congressional defense committees an annual report (to be submitted when the budget is submitted) setting forth the progress toward funding the requirements of subsection (a). The annual reporting requirement shall terminate after the fiscal year 2010 budget submission. Each such report shall include the following:

(1)

An assessment of the deployed and non-deployed quarterly ship steaming day requirements, itemized by active-duty component and reserve component.

(2)

An assessment of the associated budget request for each of the following:

Air depot maintenance workload, shown by type of airframe and by location.

(e)

Report on riverine squadrons

(1)

Report Required

The Secretary of the Navy shall submit to the congressional defense committees a report on the Riverine Squadrons of the Navy. The report shall be submitted with the President’s budget for fiscal year 2008 and shall include the following:

(A)

The total amount funded for fiscal year 2006 and projected funding for fiscal year 2007 and fiscal year 2008 for those squadrons.

(B)

The operational requirement of the commander of the United States Central Command for those squadrons and the corresponding Department of Navy concept of operations for deployments of those squadrons to support Operation Iraqi Freedom or Operation Enduring Freedom.

(C)

The military table of organization and equipment for those squadrons.

(D)

A summary of existing Department of Navy equipment that has been assigned in fiscal year 2006 or will be provided in fiscal year 2007 and fiscal year 2008 for those squadrons.

(E)

The Department of Navy directive for the mission assigned to those squadrons.

(2)

Limitation

Of the amount made available for fiscal year 2007 to the Department of Navy for operation and maintenance for the Office of the Secretary of the Navy, not more than 80 percent may be obligated before the date on which the report required under paragraph (1) is submitted.

362.

Provision of adequate storage space to secure personal property outside of assigned military family housing unit

The Secretary of a military department shall ensure that a member of the Armed Forces under the jurisdiction of the Secretary who occupies a unit of military family housing is provided with adequate storage space to secure personal property that the member is unable to secure within the unit whenever—

(1)

the member is assigned to duty in an area for which special pay under section 310 of title 37, United States Code, is available and the assignment is pursuant to orders specifying an assignment of 180 days or more; and

(2)

the dependents of the member who otherwise occupy the unit of military family housing are absent from the unit for more than 30 consecutive days during the period of the assignment of the member.

363.

Expansion of payment of replacement value of personal property damaged during transport at Government expense

(a)

Coverage of property of civilian employees of Department of Defense

Subsection (a) of section 2636a of title 10, United States Code, is amended by striking of baggage and household effects for members of the armed forces at Government expense and inserting at Government expense of baggage and household effects for members of the armed forces or civilian employees of the Department of Defense (or both).

(b)

Requirement for payment and deduction upon failure of carrier to settle

Effective March 1, 2008, such section is further amended—

(1)

in subsection (a), by striking may include and inserting shall include; and

(2)

in subsection (b), by striking may be deducted and inserting shall be deducted.

(c)

Certification on Families First program

The Secretary of Defense shall submit to the congressional defense committees a report containing the certifications of the Secretary with respect to the program of the Department of Defense known as Families First on the following matters:

(1)

Whether there is an alternative to the system under the program that would provide equal or greater capability at a lower cost.

(2)

Whether the estimates on costs, and the anticipated schedule and performance parameters, for the program and system are reasonable.

(3)

Whether the management structure for the program is adequate to manage and control program costs.

(d)

Comptroller General reports on Families First program

(1)

Review and assessment required

The Comptroller General of the United States shall conduct a review and assessment of the progress of the Department of Defense in implementing the program of the Department of Defense known as Families First.

(2)

Elements of review and assessment

In conducting the review and assessment required by paragraph (1), the Comptroller General shall—

(A)

assess the progress of the Department in achieving the goals of the Families First program, including progress in the development and deployment of the Defense Personal Property System;

(B)

assess the organization, staffing, resources, and capabilities of the Defense Personal Property System Project Management Office established on April 7, 2006;

(C)

evaluate the growth in cost of the program since the previous assessment of the program by the Comptroller General, and estimate the current annual cost of the Defense Personal Property System and each component of that system; and

(D)

assess the feasibility of implementing processes and procedures, pending the satisfactory development of the Defense Personal Property System, which would achieve the goals of the program of providing improved personal property management services to members of the Armed Forces.

(3)

Reports

The Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives reports as follows:

(A)

An interim report on the review and assessment required by paragraph (1) by not later than December 1, 2006.

(B)

A final report on such review and assessment by not later than June 1, 2007.

Sec. 403. Additional authority for increases of Army and Marine Corps active duty end strengths for fiscal years 2008 and 2009.

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the reserves.

Sec. 413. End strengths for military technicians (dual status).

Sec. 414. Fiscal year 2007 limitation on number of non-dual status technicians.

Sec. 415. Maximum number of reserve personnel authorized to be on active duty for operational support.

Subtitle C—Authorization of Appropriations

Sec. 421. Military personnel.

Sec. 422. Armed Forces Retirement Home.

A

Active Forces

401.

End strengths for active forces

(a)

In general

The Armed Forces are authorized strengths for active duty personnel as of September 30, 2007, as follows:

(1)

The Army, 512,400.

(2)

The Navy, 340,700.

(3)

The Marine Corps, 180,000.

(4)

The Air Force, 334,200.

(b)

Limitation

(1)

Army

The authorized strength for the Army provided in paragraph (1) of subsection (a) for active duty personnel for fiscal year 2007 is subject to the condition that costs of active duty personnel of the Army for that fiscal year in excess of 482,400 shall be paid out of funds authorized to be appropriated for that fiscal year for a contingent emergency reserve fund or as an emergency supplemental appropriation.

(2)

Marine corps

The authorized strength for the Marine Corps provided in paragraph (3) of subsection (a) for active duty personnel for fiscal year 2007 is subject to the condition that costs of active duty personnel of the Marine Corps for that fiscal year in excess of 175,000 shall be paid out of funds authorized to be appropriated for that fiscal year for a contingent emergency reserve fund or as an emergency supplemental appropriation.

402.

Revision in permanent active duty end strength minimum levels

Section 691(b) of title 10, United States Code, is amended by striking paragraphs (1) through (4) and inserting the following:

(1)

For the Army, 502,400.

(2)

For the Navy, 340,700.

(3)

For the Marine Corps, 180,000.

(4)

For the Air Force, 334,200.

.

403.

Additional authority for increases of Army and Marine Corps active duty end strengths for fiscal years 2008 and 2009

Effective October 1, 2007, the text of section 403 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1863) is amended to read as follows:

(a)

Authority

(1)

Army

For each of fiscal years 2008 and 2009, the Secretary of Defense may, as the Secretary determines necessary for the purposes specified in paragraph (3), establish the active-duty end strength for the Army at a number greater than the number otherwise authorized by law up to the number equal to the fiscal-year 2007 baseline plus 20,000.

(2)

Marine Corps

For each of fiscal years 2008 and 2009, the Secretary of Defense may, as the Secretary determines necessary for the purposes specified in paragraph (3), establish the active-duty end strength for the Marine Corps at a number greater than the number otherwise authorized by law up to the number equal to the fiscal-year 2007 baseline plus 4,000.

(3)

Purpose of increases

The purposes for which increases may be made in Army and Marine Corps active duty end strengths under paragraphs (1) and (2) are—

(A)

to support operational missions; and

(B)

to achieve transformational reorganization objectives, including objectives for increased numbers of combat brigades and battalions, increased unit manning, force stabilization and shaping, and rebalancing of the active and reserve component forces.

(4)

Fiscal-year 2007 baseline

In this subsection, the term fiscal-year 2007 baseline, with respect to the Army and Marine Corps, means the active-duty end strength authorized for those services in section 401 of the John Warner National Defense Authorization Act for Fiscal Year 2007.

(5)

Active-duty end strength

In this subsection, the term active-duty end strength means the strength for active-duty personnel of one of the Armed Forces as of the last day of a fiscal year.

(b)

Relationship to presidential waiver authority

Nothing in this section shall be construed to limit the President’s authority under section 123a of title 10, United States Code, to waive any statutory end strength in a time of war or national emergency.

(c)

Relationship to other variance authority

The authority under subsection (a) is in addition to the authority to vary authorized end strengths that is provided in subsections (e) and (f) of section 115 of title 10, United States Code.

(d)

Budget treatment

(1)

Fiscal Year 2008 budget

The budget for the Department of Defense for fiscal year 2008 as submitted to Congress shall comply, with respect to funding, with subsections (c) and (d) of section 691 of title 10, United States Code.

(2)

Other increases

If the Secretary of Defense plans to increase the Army or Marine Corps active duty end strength for a fiscal year under subsection (a), then the budget for the Department of Defense for that fiscal year as submitted to Congress shall include the amounts necessary for funding that active duty end strength in excess of the fiscal year 2007 active duty end strength authorized for that service under section 401 of the John Warner National Defense Authorization Act for Fiscal Year 2007.

.

B

Reserve Forces

411.

End strengths for Selected Reserve

(a)

In general

The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 2007, as follows:

(1)

The Army National Guard of the United States, 350,000.

(2)

The Army Reserve, 200,000.

(3)

The Navy Reserve, 71,300.

(4)

The Marine Corps Reserve, 39,600.

(5)

The Air National Guard of the United States, 107,000.

(6)

The Air Force Reserve, 74,900.

(7)

The Coast Guard Reserve, 10,000.

(b)

Adjustments

The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by—

(1)

the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year; and

(2)

the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.

Whenever such units or such individual members are released from active duty during any fiscal year, the end strength prescribed for such fiscal year for the Selected Reserve of such reserve component shall be increased proportionately by the total authorized strengths of such units and by the total number of such individual members.412.

End strengths for Reserves on active duty in support of the reserves

Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 2007, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

(1)

The Army National Guard of the United States, 27,441.

(2)

The Army Reserve, 15,416.

(3)

The Navy Reserve, 12,564.

(4)

The Marine Corps Reserve, 2,261.

(5)

The Air National Guard of the United States, 13,291.

(6)

The Air Force Reserve, 2,707.

413.

End strengths for military technicians (dual status)

The minimum number of military technicians (dual status) as of the last day of fiscal year 2007 for the reserve components of the Army and the Air Force (notwithstanding section 129 of title 10, United States Code) shall be the following:

(1)

For the Army Reserve, 7,912.

(2)

For the Army National Guard of the United States, 26,050.

(3)

For the Air Force Reserve, 10,124.

(4)

For the Air National Guard of the United States, 23,255.

414.

Fiscal year 2007 limitation on number of non-dual status technicians

(a)

Limitations

(1)

National guard

Within the limitation provided in section 10217(c)(2) of title 10, United States Code, the number of non-dual status technicians employed by the National Guard as of September 30, 2007, may not exceed the following:

(A)

For the Army National Guard of the United States, 1,600

(B)

For the Air National Guard of the United States, 350.

(2)

Army reserve

The number of non-dual status technicians employed by the Army Reserve as of September 30, 2007, may not exceed 595.

(3)

Air force reserve

The number of non-dual status technicians employed by the Air Force Reserve as of September 30, 2007, may not exceed 90.

(b)

Non-Dual status technicians defined

In this section, the term non-dual status technician has the meaning given that term in section 10217(a) of title 10, United States Code.

415.

Maximum number of reserve personnel authorized to be on active duty for operational support

During fiscal year 2007, the maximum number of members of the reserve components of the Armed Forces who may be serving at any time on full-time operational support duty under section 115(b) of title 10, United States Code, is the following:

(1)

The Army National Guard of the United States, 17,000.

(2)

The Army Reserve, 13,000.

(3)

The Navy Reserve, 6,200.

(4)

The Marine Corps Reserve, 3,000.

(5)

The Air National Guard of the United States, 16,000.

(6)

The Air Force Reserve, 14,000.

C

Authorization of Appropriations

421.

Military personnel

There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2007 a total of $110,098,628,000. The authorization in the preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 2007.

422.

Armed Forces Retirement Home

There is hereby authorized to be appropriated for fiscal year 2007 from the Armed Forces Retirement Home Trust Fund the sum of $54,846,000 for the operation of the Armed Forces Retirement Home.

V

Military Personnel Policy

Subtitle A—Officer Personnel Policy

Part I—Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence community positions.

Sec. 502. Extension of age for mandatory retirement for active-duty general and flag officers.

Sec. 503. Increased mandatory retirement ages for reserve officers.

Sec. 504. Standardization of grade of senior dental officer of the Air Force with that of senior dental officer of the Army.

Sec. 505. Management of chief warrant officers.

Sec. 506. Extension of temporary reduction of time-in-grade requirement for eligibility for promotion for certain active-duty list officers in grades of first lieutenant and lieutenant (junior grade).

Sec. 507. Grade and exclusion from active-duty general and flag officer distribution and strength limitations of officer serving as Attending Physician to the Congress.

Sec. 508. Modification of qualifications for leadership of the Naval Postgraduate School.

Sec. 598. Military ID cards for retiree dependents who are permanently disabled.

Sec. 599. United States Marine Band and United States Marine Drum and Bugle Corps.

A

Officer Personnel Policy

I

Officer Personnel Policy Generally

501.

Military status of officers serving in certain intelligence community positions

(a)

Clarification of military status

Section 528 of title 10, United States Code, is amended—

(1)

by striking subsections (a) and (b) and inserting the following:

(a)

Military Status

An officer of the armed forces, while serving in a position covered by this section—

(1)

shall not be subject to supervision or control by the Secretary of Defense or any other officer or employee of the Department of Defense, except as directed by the Secretary of Defense concerning reassignment from such position; and

(2)

may not exercise, by reason of the officer’s status as an officer, any supervision or control with respect to any of the military or civilian personnel of the Department of Defense except as otherwise authorized by law.

(b)

Director and Deputy Director of CIA

When the position of Director or Deputy Director of the Central Intelligence Agency is held by an officer of the armed forces, the officer serving in that position, while so serving, shall be excluded from the limitations in sections 525 and 526 of this title. However, if both such positions are held by an officer of the armed forces, only one such officer may be excluded from those limitation while so serving.

; and

(2)

by adding at the end the following new subsections:

(e)

Effect of Appointment

Except as provided in subsection (a), the appointment or assignment of an officer of the armed forces to a position covered by this section shall not affect—

(1)

the status, position, rank, or grade of such officer in the armed forces; or

(2)

any emolument, perquisite, right, privilege, or benefit incident to or arising out of such status, position, rank, or grade.

(f)

Military Pay and Allowances

(1)

An officer of the armed forces on active duty who is appointed or assigned to a position covered by this section shall, while serving in such position and while remaining on active duty, continue to receive military pay and allowances and shall not receive the pay prescribed for such position.

(2)

Funds from which pay and allowances under paragraph (1) are paid to an officer while so serving shall be reimbursed as follows:

(A)

For an officer serving in a position within the Central Intelligence Agency, such reimbursement shall be made from funds available to the Director of the Central Intelligence Agency.

(B)

For an officer serving in a position within the Office of the Director of National Intelligence, such reimbursement shall be made from funds available to the Director of National Intelligence.

(g)

Covered positions

The positions covered by this section are the positions specified in subsections (b) and (c) and the positions designated under subsection (d).

Extension of age for mandatory retirement for active-duty general and flag officers

(a)

Revised age limits for general and flag officers

Chapter 63 of title 10, United States Code, is amended by inserting after section 1252 the following new section:

1253.

Age 64: regular commissioned officers in general and flag officer grades; exception

(a)

General rule

Unless retired or separated earlier, each regular commissioned officer of the Army, Navy, Air Force, or Marine Corps serving in a general or flag officer grade shall be retired on the first day of the month following the month in which the officer becomes 64 years of age.

(b)

Exception for officers serving in O–9 and O–10 positions

In the case of an officer serving in a position that carries a grade above major general or rear admiral, the retirement under subsection (a) of that officer may be deferred—

(1)

by the President, but such a deferment may not extend beyond the first day of the month following the month in which the officer becomes 68 years of age; or

(2)

by the Secretary of Defense, but such a deferment may not extend beyond the first day of the month following the month in which the officer becomes 66 years of age.

Unless retired or separated earlier, each regular commissioned officer of the Army, Navy, Air Force, or Marine Corps (other than an officer covered by section 1252 of this title or a commissioned warrant officer) serving in a grade below brigadier general or rear admiral (lower half), in the case of an officer in the Navy, shall be retired on the first day of the month following the month in which the officer becomes 62 years of age.

(b)

Deferred retirement of health professions officers

(1)

The Secretary of the military department concerned may, subject to subsection (d), defer the retirement under subsection (a) of a health professions officer if during the period of the deferment the officer will be performing duties consisting primarily of providing patient care or performing other clinical duties.

(2)

For purposes of this subsection, a health professions officer is—

(A)

a medical officer;

(B)

a dental officer; or

(C)

an officer in the Army Nurse Corps, an officer in the Navy Nurse Corps, or an officer in the Air Force designated as a nurse.

(c)

Deferred retirement of chaplains

The Secretary of the military department concerned may, subject to subsection (d), defer the retirement under subsection (a) of an officer who is appointed or designated as a chaplain if the Secretary determines that such deferral is in the best interest of the military department concerned.

(d)

Limitation on deferment of retirements

(1)

Except as provided in paragraph (2), a deferment under subsection (b) or (c) may not extend beyond the first day of the month following the month in which the officer becomes 68 years of age.

(2)

The Secretary of the military department concerned may extend a deferment under subsection (b) or (c) beyond the day referred to in paragraph (1) if the Secretary determines that extension of the deferment is necessary for the needs of the military department concerned. Such an extension shall be made on a case-by-case basis and shall be for such period as the Secretary considers appropriate.

.

(c)

Clerical amendments

The table of sections at the beginning of chapter 63 of such title is amended—

(1)

by striking the item relating to section 1251 and inserting the following new item:

Standardization of grade of senior dental officer of the Air Force with that of senior dental officer of the Army

(a)

Air Force Assistant Surgeon General for Dental Services

Section 8081 of title 10, United States Code, is amended by striking brigadier general in the second sentence and inserting major general.

(b)

Effective date

The amendment made by subsection (a) shall take effect on the date of the occurrence of the next vacancy in the position of Assistant Surgeon General for Dental Services in the Air Force that occurs after the date of the enactment of this Act or, if earlier, on the date of the appointment to the grade of major general of the officer who is the incumbent in that position on the date of the enactment of the Act.

505.

Management of chief warrant officers

(a)

Retention of chief warrant officers, w-4, who have twice failed of selection for promotion

Paragraph (1) of section 580(e) of title 10, United States Code, is amended by striking continued on active duty if and all that follows and inserting

continued on active duty if—

(A)

in the case of a warrant officer in the grade of chief warrant officer, W–2, or chief warrant officer, W–3, the warrant officer is selected for continuation on active duty by a selection board convened under section 573(c) of this title; and

(B)

in the case of a warrant officer in the grade of chief warrant officer, W–4, the warrant officer is selected for continuation on active duty by the Secretary concerned under such procedures as the Secretary may prescribe.

.

(b)

Eligibility for consideration for promotion of warrant officers continued on active duty

Paragraph (2) of such section is amended—

(1)

by inserting (A) after (2); and

(2)

by adding at the end the following new subparagraph:

(B)

A warrant officer in the grade of chief warrant officer, W–4, who is retained on active duty pursuant to procedures prescribed under paragraph (1)(B) is eligible for further consideration for promotion while remaining on active duty.

.

(c)

Mandatory retirement for length of service

Section 1305(a) of such title is amended—

(1)

by striking (1) Except as and all the follows through W–5) and inserting A regular warrant officer;

(2)

by inserting as a warrant officer after years of active service;

(3)

by inserting the date on which after 60 days after; and

(4)

by striking paragraph (2).

506.

Extension of temporary reduction of time-in-grade requirement for eligibility for promotion for certain active-duty list officers in grades of first lieutenant and lieutenant (junior grade)

Section 619(a)(1)(B) of title 10, United States Code, is amended by striking October 1, 2005 and inserting October 1, 2008.

507.

Grade and exclusion from active-duty general and flag officer distribution and strength limitations of officer serving as Attending Physician to the Congress

(a)

Grade

(1)

Regular officer

(A)

Chapter 41 of title 10, United States Code, is amended by adding at the end the following new section:

722.

Attending Physician to the Congress: grade

A general officer serving as Attending Physician to the Congress, while so serving, holds the grade of major general. A flag officer serving as Attending Physician to the Congress, while so serving, holds the grade of rear admiral.

.

(B)

The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

722. Attending Physician to the Congress: grade.

.

(2)

Reserve officer

(A)

Section 12210 of such title is amended by striking who holds and all that follows and inserting holds the reserve grade of major general or rear admiral, as appropriate..

(B)

The heading of such section is amended to read as follows:

12210.

Attending Physician to the Congress: reserve grade

.

(C)

The table of sections at the beginning of chapter 1205 of such title is amended by striking the item relating to section 12210 and inserting the following new item:

12210. Attending Physician to the Congress: reserve grade.

.

(b)

Distribution Limitations

Section 525 of such title is amended by adding at the end the following new subsection:

(f)

An officer while serving as Attending Physician to the Congress is in addition to the number that would otherwise be permitted for that officer’s armed force for officers serving on active duty in grades above brigadier general or rear admiral (lower half) under subsection (a).

.

(c)

Active-Duty Strength Limitations

Section 526 of such title is amended by adding at the end the following new subsection:

(f)

Exclusion of Attending Physician to the Congress

The limitations of this section do not apply to the general or flag officer who is serving as Attending Physician to the Congress.

.

508.

Modification of qualifications for leadership of the Naval Postgraduate School

Subsection (a) of section 7042 of title 10, United States Code, is amended to read as follows:

(a)(1)

The President of the Naval Postgraduate School shall be one of the following:

(A)

An active-duty officer of the Navy or Marine Corps in a grade not below the grade of captain, or colonel, respectively, who is assigned or detailed to such position.

(B)

A civilian individual, including an individual who was retired from the Navy or Marine Corps in a grade not below captain, or colonel, respectively, who has the qualifications appropriate to the position of President and is selected by the Secretary of the Navy as the best qualified from among candidates for the position in accordance with—

(i)

the criteria specified in paragraph (4);

(ii)

a process determined by the Secretary; and

(iii)

other factors the Secretary considers essential.

(2)

Before making an assignment, detail, or selection of an individual for the position of President of the Naval Postgraduate School, the Secretary shall—

(A)

consult with the Board of Advisors for the Naval Postgraduate School;

(B)

consider any recommendation of the leadership and faculty of the Naval Postgraduate School regarding the assignment or selection to that position; and

(C)

consider the recommendations of the Chief of Naval Operations and the Commandant of the Marine Corps.

(3)

An individual selected for the position of President of the Naval Postgraduate School under paragraph (1)(B) shall serve in that position for a term of not more than five years and may be continued in that position for an additional term of up to five years.

(4)

The qualifications appropriate for selection of an individual for detail or assignment to the position of President of the Naval Postgraduate School include the following:

(A)

An academic degree that is either—

(i)

a doctorate degree in a field of study relevant to the mission and function of the Naval Postgraduate School; or

(ii)

a master’s degree in a field of study relevant to the mission and function of the Naval Postgraduate School, but only if—

(I)

the individual is an active-duty or retired officer of the Navy or Marine Corps in a grade not below the grade of captain or colonel, respectively; and

(II)

at the time of the selection of that individual as President, the individual permanently appointed to the position of Provost and Academic Dean has a doctorate degree in such a field of study.

(B)

A comprehensive understanding of the Department of the Navy, the Department of Defense, and joint and combined operations.

(C)

Leadership experience at the senior level in a large and diverse organization.

(D)

Demonstrated ability to foster and encourage a program of research in order to sustain academic excellence.

(E)

Other qualifications, as determined by the Secretary of the Navy.

.

II

Officer Promotion Policy

511.

Revisions to authorities relating to authorized delays of officer promotions

(a)

Officers on active-duty list

(1)

Secretary of Defense Regulations for delays of Appointment upon promotion

Paragraphs (1) and (2) of subsection (d) of section 624 of title 10, United States Code, are amended by striking prescribed by the Secretary concerned in and inserting prescribed by the Secretary of Defense.

(2)

Additional basis for delay of appointment by reason of investigations and proceedings

Subsection (d)(1) of such section is further amended—

(A)

by striking or at the end of subparagraph (C);

(B)

by striking the period at the end of subparagraph (D) and inserting ; or;

(C)

by inserting after subparagraph (D) the following new subparagraph:

(E)

substantiated adverse information about the officer that is material to the decision to appoint the officer is under review by the Secretary of Defense or the Secretary concerned.

; and

(D)

in the flush matter following subparagraph (E), as inserted by subparagraph (C) of this paragraph—

(i)

by striking or after chapter 60 of this title; and

(ii)

by inserting after brought against him, the following: or if, after a review of substantiated adverse information about the officer regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion,.

(3)

Additional basis for delay in appointment for lack of qualifications

Subsection (d)(2) of such section is further amended—

(A)

in the first sentence, by inserting before is mentally, physically, the following: has not met the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, or; and

(B)

in the second sentence, by striking If the Secretary concerned later determines that the officer is qualified for promotion to such grade and inserting If it is later determined by a civilian official of the Department of Defense (not below the level of Secretary of a military department) that the officer is qualified for promotion to such grade and, after a review of adverse information regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion to such grade.

(b)

Officers on reserve active-status list

(1)

Secretary of Defense regulations for delays of appointment upon promotion

Subsections (a)(1) and (b) of section 14311 of such title are amended by striking Secretary of the military department concerned and inserting Secretary of Defense.

(2)

Additional basis for original delay of appointment by reason of investigations and proceedings

Section 14311(a) of such title is further amended—

(A)

in paragraph (1), by adding at the end the following new subparagraph:

(E)

Substantiated adverse information about the officer that is material to the decision to appoint the officer is under review by the Secretary of Defense or the Secretary concerned.

; and

(B)

in paragraph (2)—

(i)

by striking or after show cause for retention,; and

(ii)

by inserting after of the charges, the following: or if, after a review of substantiated adverse information about the officer regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion,.

(3)

Additional basis for delay in Appointment for lack of qualifications

Section 14311(b) of such section is further amended—

(A)

in the first sentence, by inserting before is mentally, physically, the following: has not met the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, or; and

(B)

in the second sentence, by striking If the Secretary concerned later determines that the officer is qualified for promotion to the higher grade and inserting If it is later determined by a civilian official of the Department of Defense (not below the level of Secretary of a military department) that the officer is qualified for promotion to the higher grade and, after a review of adverse information regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion to the higher grade.

(c)

Deadline for uniform regulations on delay of promotions

(1)

Deadline

The Secretary of Defense shall prescribe the regulations required by section 624(d) of title 10, United States Code (as amended by subsection (a)(1) of this section), and the regulations required by section 14311 of such title (as amended by subsection (b)(1) of this section) not later than March 1, 2008.

(2)

Savings clause for existing regulations

Until the Secretary of Defense prescribes regulations pursuant to paragraph (1), regulations prescribed by the Secretaries of the military departments under the sections referred to in paragraph (1) shall remain in effect.

(d)

Technical amendments to clarify date of establishment of promotion lists

(1)

Promotion lists for active-duty list officers

Section 624(a)(1) of title 10, United States Code, is amended by adding at the end the following new sentence: A promotion list is considered to be established under this section as of the date of the approval of the report of the selection board under the preceding sentence..

(2)

Promotion lists for reserve active-status list officers

Section 14308(a) of title 10, United States Code, is amended by adding at the end the following new sentence: A promotion list is considered to be established under this section as of the date of the approval of the report of the selection board under the preceding sentence..

(e)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply with respect to officers on promotion lists established on or after the date of the enactment of this Act.

512.

Consideration of adverse information by selection boards in recommendations on officers to be promoted

(a)

Officers on Active-Duty List

Section 616(c) of title 10, United States Code, is amended—

(1)

by striking and at the end of paragraph (1);

(2)

by striking the period at the end in paragraph (2) and inserting ; and; and

(3)

by adding at the end the following new paragraph:

(3)

a majority of the members of the board, after consideration by all members of the board of any adverse information about the officer that is provided to the board under section 615 of this title, finds that the officer is among the officers best qualified for promotion to meet the needs of the armed force concerned consistent with the requirement of exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable.

.

(b)

Officers on Reserve-Active Status List

Section 14108(b) of such title is amended—

(1)

in the heading, by striking Majority Required.— and inserting Actions Required.—;

(2)

by striking and at the end of paragraph (1);

(3)

by striking the period at the end in paragraph (2) and inserting ; and; and

(4)

by adding at the end the following new paragraph:

(3)

a majority of the members of the board, after consideration by all members of the board of any adverse information about the officer that is provided to the board under section 14107 of this title, finds that the officer is among the officers best qualified for promotion to meet the needs of the armed force concerned consistent with the requirement of exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable.

.

(c)

Effective Date

The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply with respect to selection boards convened on or after that date.

513.

Expanded authority for removal from reports of selection boards of officers recommended for promotion to grades below general and flag grades

(a)

Officers on Active-Duty List

Section 618(d) of title 10, United States Code, is amended—

(1)

by striking The name and inserting (1) Except as provided in paragraph (2), the name; and

(2)

by adding at the end the following new paragraph:

(2)

In the case of an officer recommended by a selection board for promotion to a grade below brigadier general or rear admiral (lower half), the name of the officer may also be removed from the report of the selection board by the Secretary of Defense or the Deputy Secretary of Defense.

.

(b)

Officers on Reserve-Active Status List

Section 14111(b) of such title is amended—

(1)

by striking The name and inserting (1) Except as provided in paragraph (2), the name; and

(2)

by adding at the end the following new paragraph:

(2)

In the case of an officer recommended by a selection board for promotion to a grade below brigadier general or rear admiral (lower half), the name of the officer may also be removed from the report of the selection board by the Secretary of Defense or the Deputy Secretary of Defense.

.

(c)

Effective Date

The amendments made by this section shall apply with respect to selection boards convened on or after the date of the enactment of this Act.

514.

Special selection board authorities

(a)

Officers on Active-Duty List

(1)

Boards for administrative error available only to officers in or above promotion zone

Subsection (a)(1) of section 628 of title 10, United States Code, is amended by inserting from in or above the promotion zone after for selection for promotion.

(2)

Actions treatable as material unfairness

Subsection (b)(1)(A) of such section is amended by inserting in a matter material to the decision of the board after contrary to law.

(b)

Officers on Reserve Active-Status List

Section 14502(b)(1)(A) of such title is amended by inserting in a matter material to the decision of the board after contrary to law.

(c)

Effective Date

The amendments made by this section shall take effect on March 1, 2007, and shall apply with respect to selection boards convened on or after that date.

515.

Removal from promotion list of officers not promoted within 18 months of approval of list by the President

(a)

Officers on Active-Duty Lists

(1)

Clarification of removal due to Senate not giving advice and consent

Subsection (b) of section 629 of title 10, United States Code, is amended—

(A)

by inserting Removal due to Senate not giving advice and consent.— after (b) ; and

(B)

by inserting to a grade for which appointment is required by section 624(c) of this title to be made by and with the advice and consent of the Senate after the President.

(2)

Removal after 18 months

Such section is further amended—

(A)

by redesignating subsection (c) as subsection (d); and

(B)

by inserting after subsection (b) the following new subsection (c):

(c)

Removal after 18 months

(1)

If an officer whose name is on a list of officers approved for promotion under section 624(a) of this title to a grade for which appointment is required by section 624(c) of this title to be made by and with the advice and consent of the Senate is not appointed to that grade under such section during the officer’s promotion eligibility period, the officer’s name shall be removed from the list unless as of the end of such period the Senate has given its advice and consent to the appointment.

(2)

Before the end of the promotion eligibility period with respect to an officer under paragraph (1), the President may extend that period for purposes of paragraph (1) by an additional 12 months.

(3)

In this subsection, the term promotion eligibility period means, with respect to an officer whose name is on a list of officers approved for promotion under section 624(a) of this title to a grade for which appointment is required by section 624(c) of this title to be made by and with the advice and consent of the Senate, the period beginning on the date on which the list is so approved and ending on the first day of the eighteenth month following the month during which the list is so approved.

.

(3)

Cross-reference amendment

Paragraph (1) of subsection (d) of such section, as redesignated by paragraph (2)(A) of this subsection, is amended by striking or (b) and inserting (b), or (c).

(4)

Stylistic amendments

Such section is further amended—

(A)

in subsection (a), by inserting Removal by President.— after (a); and

(B)

in subsection (d) (as amended by paragraph (3)), by inserting Continued Eligibility for Promotion.— before (1).

(b)

Officers on Reserve Active Status List

(1)

Removal following return

Section 14310 of such title is amended—

(A)

by redesignating subsection (c) as subsection (d); and

(B)

by inserting after subsection (b) the following new subsection (c):

(c)

Removal after 18 months

(1)

If an officer whose name is on a list of officers approved for promotion under section 14308(a) of this title to a grade for which appointment is required by section 12203(a) of this title to be made by and with the advice and consent of the Senate is not appointed to that grade under such section during the officer’s promotion eligibility period, the officer’s name shall be removed from the list unless as of the end of such period the Senate has given its advice and consent to the appointment.

(2)

Before the end of the promotion eligibility period with respect to an officer under paragraph (1), the President may extend that period for purposes of paragraph (1) by an additional 12 months.

(3)

In this subsection, the term promotion eligibility period means, with respect to an officer whose name is on a list of officers approved for promotion under section 14308(a) of this title to a grade for which appointment is required by section 12203(a) of this title to be made by and with the advice and consent of the Senate, the period beginning on the date on which the list is so approved and ending on the first day of the eighteenth month following the month during which the list is so approved.

.

(2)

Cross-reference amendment

Paragraph (1) of subsection (d) of such section, as redesignated by paragraph (1)(A) of this subsection, is amended by striking or (b) and inserting (b), or (c).

(c)

Effective Date

The amendments made by this section shall apply to any promotion list approved by the President after January 1, 2007.

III

Joint Officer Management Requirements

516.

Modification and enhancement of general authorities on management of officers who are joint qualified

(a)

Redesignation of applicability of policies toward joint qualification

Subsection (a) of section 661 of title 10, United States Code, is amended by striking the last sentence.

(b)

Revision to general authorities

Subsections (b), (c), and (d) of such section are amended to read as follows:

(b)

Levels, designation, and numbers

(1)(A)

The Secretary of Defense shall establish different levels of joint qualification, as well as the criteria for qualification at each level. Such levels of joint qualification shall be established by the Secretary with the advice of the Chairman of the Joint Chiefs of Staff. Each level shall, as a minimum, have both joint education criteria and joint experience criteria. The purpose of establishing such qualification levels is to ensure a systematic, progressive, career-long development of officers in joint matters and to ensure that officers serving as general and flag officers have the requisite experience and education to be highly proficient in joint matters.

(B)

The number of officers who are joint qualified shall be determined by the Secretary of Defense, with the advice of the Chairman of the Joint Chiefs of Staff. Such number shall be large enough to meet the requirements of subsection (d).

(2)

Certain officers shall be designated as joint qualified by the Secretary of Defense with the advice of the Chairman of the Joint Chiefs of Staff.

(3)

An officer may be designated as joint qualified under paragraph (2) only if the officer—

(A)

meets the education and experience criteria of subsection (c);

(B)

meets such additional criteria as prescribed by the Secretary of Defense; and

(C)

holds the grade of captain or, in the case of the Navy, lieutenant or a higher grade.

(4)

The authority of the Secretary of Defense under paragraph (2) to designate officers as joint qualified may be delegated only to the Deputy Secretary of Defense or an Under Secretary of Defense.

(c)

Education and experience requirements

(1)

An officer may not be designated as joint qualified until the officer—

(A)

successfully completes an appropriate program of joint professional military education, as described in subsections (b) and (c) of section 2155 of this title, at a joint professional military education school; and

(B)

successfully completes—

(i)

a full tour of duty in a joint assignment, as described in section 664(f) of this title; or

(ii)

such other assignments and experiences in a manner that demonstrate the officer’s mastery of knowledge, skills, and abilities in joint matters, as determined under such regulations and policy as the Secretary of Defense may prescribe.

(2)

Subject to paragraphs (3) through (6), the Secretary of Defense may waive the requirement under paragraph (1)(A) that an officer has successfully completed a program of education, as described in subsections (b) and (c) of section 2155 of this title.

(3)

In the case of an officer in a grade below brigadier general or rear admiral (lower half), a waiver under paragraph (2) may be granted only if—

(A)

the officer has completed two full tours of duty in a joint duty assignment, as described in section 664(f) of this title, in such a manner as to demonstrate the officer’s mastery of knowledge, skills, and abilities on joint matters; and

(B)

the Secretary of Defense determines that the types of joint duty experiences completed by the officer have been of sufficient breadth to prepare the officer adequately for service as a general or flag officer in a joint duty assignment position.

(4)

In the case of a general or flag officer, a waiver under paragraph (2) may be granted only—

(A)

under unusual circumstances justifying the variation from the education requirement under paragraph (1)(A); and

(B)

under circumstances in which the waiver is necessary to meet a critical need of the armed forces, as determined by the Chairman of the Joint Chiefs of Staff.

(5)

In the case of officers in grades below brigadier general or rear admiral (lower half), the total number of waivers granted under paragraph (2) for officers in the same pay grade during a fiscal year may not exceed 10 percent of the total number of officers in that pay grade designated as joint qualified during that fiscal year.

(6)

There may not be more than 32 general and flag officers on active duty at the same time who, while holding a general or flag officer position, were designated joint qualified (or were selected for the joint specialty before October 1, 2007) and for whom a waiver was granted under paragraph (2).

(d)

Number of joint duty assignments

(1)

The Secretary of Defense shall ensure that approximately one-half of the joint duty assignment positions in grades above major or, in the case of the Navy, lieutenant commander are filled at any time by officers who have the appropriate level of joint qualification.

(2)

The Secretary of Defense, with the advice of the Chairman of the Joint Chiefs of Staff, shall designate an appropriate number of joint duty assignment positions as critical joint duty assignment positions. A position may be designated as a critical joint duty assignment position only if the duties and responsibilities of the position make it important that the occupant be particularly trained in, and oriented toward, joint matters.

(3)(A)

Subject to subparagraph (B), a position designated under paragraph (2) may be held only by an officer who—

(i)

was designated as joint qualified in accordance with this chapter; or

(ii)

was selected for the joint specialty before October 1, 2007.

(B)

The Secretary of Defense may waive the requirement in subparagraph (A) with respect to the assignment of an officer to a position designated under paragraph (2). Any such waiver shall be granted on a case-by-case basis. The authority of the Secretary to grant such a waiver may be delegated only to the Chairman of the Joint Chiefs of Staff.

(4)

The Secretary of Defense shall ensure that, of those joint duty assignment positions that are filled by general or flag officers, a substantial portion are among those positions that are designated under paragraph (2) as critical joint duty assignment positions.

.

(c)

Career guidelines

Subsection (e) of such section is amended by striking officers with the joint specialty and inserting officers to achieve joint qualification and for officers who have been designated as joint qualified.

(d)

Technical amendment regarding treatment of certain service

Subsection (f) of such section is amended by striking section 619(e)(1) and inserting section 619a.

(e)

Clerical amendments

(1)

Section heading

The heading of such section is amended to read as follows:

661.

Management policies for officers who are joint qualified

.

(2)

Table of sections

The table of sections at the beginning of chapter 38 of such title is amended by striking the item relating to section 661 and inserting the following new item:

661. Management policies for officers who are joint qualified.

.

(f)

Effective date

The amendments made by this section shall take effect on October 1, 2007.

(g)

Treatment of current joint specialty officers

For the purposes of chapter 38 of title 10, United States Code, and sections 154, 164, and 619a of such title, an officer who, as of September 30, 2007, has been selected for or has the joint specialty under section 661 of such title, as in effect on that date, shall be considered after that date to be an officer designated as joint qualified by the Secretary of Defense under section 661(b)(2) of such title, as amended by this section.

(h)

Implementation plan

(1)

Plan required

Not later than March 31, 2007, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a plan for the implementation of the joint officer management system, which will take effect on October 1, 2007, as provided in subsection (f), as a result of the amendments made by this section and other provisions of this Act to provisions of chapter 38 of title 10, United States Code.

(2)

Elements of plan

In developing the plan required by this subsection, the Secretary shall pay particular attention to matters related to the transition of officers from the joint specialty system in effect before October 1, 2007, to the joint officer management system in effect after that date. At a minimum, the plan shall include the following:

(A)

The policies and criteria to be used for designating officers as joint qualified on the basis of service performed by such officers before that date, had the amendments made by this section and other provisions of this Act to provisions of chapter 38 of title 10, United States Code, taken effect before the date of the enactment of this Act.

(B)

The policies and criteria prescribed by the Secretary of Defense to be used in making determinations under section 661(c)(1)(B)(ii) of such title, as amended by this section.

(C)

The recommendations of the Secretary for any legislative changes that may be necessary to effectuate the joint officer management system.

517.

Modification of promotion policy objectives for joint officers

Section 662(a) of title 10, United States Code, is amended—

(1)

in paragraph (1), by inserting and after the semicolon; and

(2)

by striking paragraphs (2) and (3) and inserting the following new paragraph (2):

(2)

officers who are serving in or have served in joint duty assignments are expected, as a group, to be promoted to the next higher grade at a rate not less than the rate for all officers of the same armed force in the same grade and competitive category.

.

518.

Applicability of joint duty assignment requirements limited to graduates of National Defense University schools

(a)

Applicability

Section 663 of title 10, United States Code, is amended—

(1)

in subsection (a), by striking a joint professional military education school and inserting a school within the National Defense University specified in subsection (c); and

(2)

in subsection (b)—

(A)

in paragraph (1), by striking a joint professional military education school and inserting a school within the National Defense University specified in subsection (c); and

(B)

in paragraph (2), by striking a joint professional military education school and inserting a school referred to in paragraph (1).

(b)

Covered schools within NDU

Such section is further amended by adding at the end the following new subsection:

(c)

Covered schools within the national defense university

For purposes of this section, a school within the National Defense University specified in this subsection is one of the following:

(1)

The National War College.

(2)

The Industrial College of the Armed Forces.

(3)

The Joint Forces Staff College.

.

519.

Modification of certain definitions relating to jointness

(a)

Definition of joint matters

Subsection (a) of section 668 of title 10, United States Code, is amended to read as follows:

(a)

Joint matters

(1)

In this chapter, the term joint matters means matters related to the achievement of unified action by multiple military forces in operations conducted across domains such as land, sea, or air, in space, or in the information environment, including matters relating to—

(A)

national military strategy;

(B)

strategic planning and contingency planning;

(C)

command and control of operations under unified command;

(D)

national security planning with other departments and agencies of the United States; and

(E)

combined operations with military forces of allied nations.

(2)

In the context of joint matters, the term multiple military forces refers to forces that involve participants from the armed forces and one or more of the following:

(A)

Other departments and agencies of the United States.

(B)

The military forces or agencies of other countries.

(C)

Non-governmental persons or entities.

.

(b)

Definition of joint duty assignment

Paragraph (1) of subsection (b) of such section is amended by striking That definition shall and all that follows and inserting the following:

That definition—

(A)

shall be limited to assignments in which the officer gains significant experience in joint matters; and

(B)

shall exclude assignments for joint training and education, except an assignment as an instructor responsible for preparing and presenting courses in areas of the curricula designated in section 2155(c) of this title as part of a program designated by the Secretary of Defense as joint professional military education Phase II.

.

(c)

Definition of critical occupational specialty

Such section is further amended by adding at the end the following new subsection:

(d)

Critical occupational specialty

(1)

In this chapter, the term critical occupational specialty means a military occupational specialty involving combat operations within the combat arms, in the case of the Army, or the equivalent arms, in the case of the Navy, Air Force, and Marine Corps, that the Secretary of Defense designates as critical.

(2)

At a minimum, the Secretary of Defense shall designate as a critical occupational specialty under paragraph (1) any military occupational specialty within a combat arms (or the equivalent) that is experiencing a severe shortage of trained officers in that specialty, as determined by the Secretary.

.

(d)

Conforming amendments

(1)

Initial assignment of officers with critical occupational specialties

Section 664(c) of such title is amended—

(A)

in the matter before paragraph (1) by striking section 661(c)(2) and inserting section 661(c)(1)(B);

(B)

by striking paragraph (1);

(C)

by redesignating paragraph (2) as paragraph (1) and, in such paragraph, by striking section 661(c)(2) and inserting section 668(d); and

(D)

by redesignating paragraph (3) as paragraph (2).

(2)

Annual report on number of officers with critical occupational specialties

Section 667(3) of such title is amended by striking section 661(c)(2) and inserting section 668(d).

(e)

Effective date

The amendments made by this section shall take effect on October 1, 2007.

B

Reserve Component Matters

I

Reserve Component Management

521.

Recognition of former Representative G.V. ‘Sonny’ Montgomery for his 30 years of service in the House of Representatives

(a)

Findings

Congress makes the following findings:

(1)

G.V. “Sonny” Montgomery was elected to the House of Representatives in 1967 and served the people of east-central Mississippi for 30 years with distinction, dedication, and conviction.

(2)

Sonny Montgomery had a distinguished military career both before and during his service in Congress, serving in World War II and the Korean War, and retired from the Mississippi National Guard with the rank of Major General.

(3)

As a Member of the House of Representatives, Sonny Montgomery served on the Committee on Armed Services and served with great distinction as the Chairman of the Committee on Veterans’ Affairs for 13 years from 1981 through 1994.

(4)

Representative Montgomery’s colleagues knew him as a statesman of the institution and as a tireless advocate for policies that would improve the lives of persons who serve the United States.

(5)

Representative Montgomery was deeply committed to all members of the Armed Forces who served in combat and traveled to Korea and Southeast Asia to recover remains and help determine the fate of POW/MIAs from the Korean and Vietnam Wars.

(6)

Through his years of service on the Committee on Armed Services, Representative Montgomery made great contributions to the capabilities of the National Guard and Reserves, by improving their training and equipment and by better integrating them with the active force.

(7)

Under the revised GI Bill that bears his name and was signed into law in 1984, Representative Montgomery brought educational benefits to millions of veterans, including those members who had served in the National Guard and Reserves, and strengthened the all-volunteer force.

(8)

Representative Montgomery had received many honors and commendations before his passing on May 12, 2006, including most recently and notably the Presidential Medal of Freedom, the highest civilian honor accorded by the United States.

(b)

Recognition

Congress recognizes and commends former Representative G.V. Sonny Montgomery for his 30 years of service to benefit the people of Mississippi, members of the Armed Forces and their families, veterans, and the United States.

522.

Revisions to reserve call-up authority

(a)

Maximum number of days

Subsection (a) of section 12304 of title 10, United States Code, is amended by striking 270 days and inserting 365 days.

(b)

Fair treatment

Such section is further amended—

(1)

by redesignating subsection (i) as subsection (j); and

(2)

by inserting after subsection (h) the following new subsection (i):

(i)

Considerations for involuntary order to active duty

(1)

In determining which members of the Selected Reserve and Individual Ready Reserve will be ordered to duty without their consent under this section, appropriate consideration shall be given to—

(A)

the length and nature of previous service, to assure such sharing of exposure to hazards as the national security and military requirements will reasonably allow;

(B)

the frequency of assignments during service career;

(C)

family responsibilities; and

(D)

employment necessary to maintain the national health, safety, or interest.

(2)

The Secretary of Defense shall prescribe such policies and procedures as the Secretary considers necessary to carry out this subsection.

.

523.

Military retirement credit for certain service by National Guard members performed while in a State duty status immediately after the terrorist attacks of September 11, 2001

Subsection (c) of section 514 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3232) is amended by adding at the end the following new paragraph:

(3)

In the State of New Jersey: Bergen, Hudson, Union, and Middlesex.

.

II

Authorities Relating to Guard and Reserve Duty

524.

Title 10 definition of Active Guard and Reserve duty

Section 101 of title 10, United States Code, is amended—

(1)

by adding at the end of subsection (b) the following new paragraph:

(16)

The term Active Guard and Reserve means a member of a reserve component who is on active duty pursuant to section 12301(d) of this title or, if a member of the Army National Guard or Air National Guard, is on full-time National Guard duty pursuant to section 502(f) of title 32, and who is performing Active Guard and Reserve duty.

; and

(2)

in paragraph (6)(A) of subsection (d)—

(A)

by striking or full-time National Guard duty after means active duty; and

(B)

by striking , pursuant to an order to active duty or full-time National Guard duty and inserting pursuant to an order to full-time National Guard duty,.

525.

Authority for Active Guard and Reserve duties to include support of operational missions assigned to the reserve components and instruction and training of active-duty personnel

(a)

AGR duty under title 10

Subsections (a) and (b) of section 12310 of title 10, United States Code, are amended to read as follows:

(a)

Authority

(1)

The Secretary concerned may order a member of a reserve component under the Secretary’s jurisdiction to active duty pursuant to section 12301(d) of this title to perform Active Guard and Reserve duty organizing, administering, recruiting, instructing, or training the reserve components.

(2)

A Reserve ordered to active duty under paragraph (1) shall be ordered in the Reserve’s reserve grade. While so serving, the Reserve continues to be eligible for promotion as a Reserve, if otherwise qualified.

(b)

Duties

A Reserve on active duty under subsection (a) may perform the following additional duties to the extent that the performance of those duties does not interfere with the performance of the Reserve’s primary Active Guard and Reserve duties described in subsection (a)(1):

(1)

Supporting operations or missions assigned in whole or in part to the reserve components.

(2)

Supporting operations or missions performed or to be performed by—

(A)

a unit composed of elements from more than one component of the same armed force; or

(B)

a joint forces unit that includes—

(i)

one or more reserve component units; or

(ii)

a member of a reserve component whose reserve component assignment is in a position in an element of the joint forces unit.

(3)

Advising the Secretary of Defense, the Secretaries of the military departments, the Joint Chiefs of Staff, and the commanders of the combatant commands regarding reserve component matters.

(4)

Instructing or training in the United States or the Commonwealth of Puerto Rico or possessions of the United States of—

(A)

active-duty members of the armed forces;

(B)

members of foreign military forces (under the same authorities and restrictions applicable to active-duty members providing such instruction or training);

(C)

Department of Defense contractor personnel; or

(D)

Department of Defense civilian employees.

.

(b)

Military technicians under title 10

Section 10216(a) of such title is amended—

(1)

in paragraph (1)(C), by striking administration and and inserting organizing, administering, instructing, or; and

(2)

by adding at the end the following new paragraph:

(3)

A military technician (dual status) who is employed under section 3101 of title 5 may perform the following additional duties to the extent that the performance of those duties does not interfere with the performance of the primary duties described in paragraph (1):

(A)

Supporting operations or missions assigned in whole or in part to the technician’s unit.

(B)

Supporting operations or missions performed or to be performed by—

(i)

a unit composed of elements from more than one component of the technician’s armed force; or

(ii)

a joint forces unit that includes—

(I)

one or more units of the technician’s component; or

(II)

a member of the technician’s component whose reserve component assignment is in a position in an element of the joint forces unit.

(C)

Instructing or training in the United States or the Commonwealth of Puerto Rico or possessions of the United States of—

(i)

active-duty members of the armed forces;

(ii)

members of foreign military forces (under the same authorities and restrictions applicable to active-duty members providing such instruction or training);

(iii)

Department of Defense contractor personnel; or

(iv)

Department of Defense civilian employees.

.

(c)

National Guard title 32 training duty

Section 502(f) of title 32, United States Code, title is amended—

(1)

by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(2)

by inserting (1) before Under regulations; and

(3)

by striking the last sentence and inserting the following:

(2)

The training or duty ordered to be performed under paragraph (1) may include the following:

(A)

Support of operations or missions undertaken by the member’s unit at the request of the President or Secretary of Defense.

(B)

Support of training operations and training missions assigned in whole or in part to the National Guard by the Secretary concerned, but only to the extent that such training missions and training operations—

(i)

are performed in the United States or the Commonwealth of Puerto Rico or possessions of the United States; and

(ii)

are only to instruct active duty military, foreign military (under the same authorities and restrictions applicable to active duty troops), Department of Defense contractor personnel, or Department of Defense civilian employees.

(3)

Duty without pay shall be considered for all purposes as if it were duty with pay.

.

(d)

National Guard technicians under title 32

Section 709(a) of title 32, United States Code, is amended—

(1)

in paragraph (1)—

(A)

by striking administration and and inserting organizing, administering, instructing, or; and

(B)

by striking and at the end of such paragraph;

(2)

by striking the period at the end of paragraph (2) and inserting ; and; and

(3)

by adding at the end the following new paragraph:

(3)

the performance of the following additional duties to the extent that the performance of those duties does not interfere with the performance of the duties described by paragraphs (1) and (2):

(A)

Support of operations or missions undertaken by the technician’s unit at the request of the President or the Secretary of Defense.

(B)

Support of Federal training operations or Federal training missions assigned in whole or in part to the technician’s unit.

(C)

Instructing or training in the United States or the Commonwealth of Puerto Rico or possessions of the United States of—

(i)

active-duty members of the armed forces;

(ii)

members of foreign military forces (under the same authorities and restrictions applicable to active-duty members providing such instruction or training);

(iii)

Department of Defense contractor personnel; or

(iv)

Department of Defense civilian employees.

.

526.

Governor’s authority to order members to Active Guard and Reserve duty

(a)

In general

Chapter 3 of title 32, United States Code, is amended by adding at the end the following new section:

328.

Active Guard and Reserve duty: Governor’s authority

(a)

Authority

The Governor of a State or the Commonwealth of Puerto Rico, Guam, or the Virgin Islands, or the commanding general of the District of Columbia National Guard, as the case may be, with the consent of the Secretary concerned, may order a member of the National Guard to perform Active Guard and Reserve duty, as defined by section 101(d)(6) of title 10, pursuant to section 502(f) of this title.

(b)

Duties

A member of the National Guard performing duty under subsection (a) may perform the additional duties specified in section 502(f)(2) of this title to the extent that the performance of those duties does not interfere with the performance of the member’s primary Active Guard and Reserve duties of organizing, administering, recruiting, instructing, and training the reserve components.

.

(b)

Clerical Amendment

The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

328. Active Guard and Reserve duty: Governor’s authority.

.

527.

Expansion of operations of civil support teams

(a)

In general

Section 12310(c) of title 10, United States Code, is amended—

(1)

in paragraph (1)—

(A)

by striking involving— and inserting involving any of the following:; and

(B)

by striking subparagraphs (A) and (B) and inserting the following:

(A)

The use or threatened use of a weapon of mass destruction (as defined in section 12304(i)(2) of this title) in the United States.

(B)

A terrorist attack or threatened terrorist attack in the United States that results, or could result, in catastrophic loss of life or property.

(C)

The intentional or unintentional release of nuclear, biological, radiological, or toxic or poisonous chemical materials in the United States that results, or could result, in catastrophic loss of life or property.

(D)

A natural or manmade disaster in the United States that results in, or could result in, catastrophic loss of life or property.

;

(2)

by amending paragraph (3) to read as follows:

(3)

A Reserve may perform duty described in paragraph (1) only while assigned to a reserve component weapons of mass destruction civil support team.

; and

(3)

by adding at the end the following new paragraph:

(7)

In this subsection, the term United States includes the Commonwealth of Puerto Rico, Guam, and the Virgin Islands.

.

(b)

Technical and conforming amendments

Such section is further amended—

(1)

by striking the subsection heading and inserting Operations relating to defense against weapons of mass destruction and terrorist attacks.—;

(2)

in paragraph (5), by striking rapid assessment element team and inserting weapons of mass destruction civil support team; and

(3)

in paragraph (6)—

(A)

in the matter preceding subparagraph (A), by striking paragraph (3) and inserting paragraphs (1) and (3); and

Modification of authorities relating to the Commission on the National Guard and Reserves

(a)

Annuities and pay of members on federal reemployment

Subsection (e) of section 513 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1882), as amended by section 516 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3237), is further amended by adding at the end the following new paragraph:

(3)

If warranted by circumstances described in subparagraph (A) or (B) of section 8344(i)(1) of title 5, United States Code, or by circumstances described in subparagraph (A) or (B) of section 8468(f)(1) of such title, as applicable, the chairman of the Commission may exercise, with respect to the members of the Commission, the same waiver authority as would be available to the Director of the Office of Personnel Management under such section.

.

(b)

Final report

Subsection (f)(2) of such section 513 (118 Stat. 1882) is amended by striking Not later than one year after the first meeting of the Commission and inserting Not later than January 31, 2008.

(c)

Effective date

The amendments made by this section shall take effect as of October 28, 2004, as if included in the enactment of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. The amendment made by subsection (a) shall apply to members of the Commission on the National Guard and Reserves appointed on or after that date.

529.

Additional matters to be reviewed by Commission on the National Guard and Reserves

(a)

Additional matters To be reviewed by commission

The Commission on the National Guard and Reserves shall include among the matters it studies (in addition to the matters specified in subsection (c) of the commission charter) each of the following:

(1)

National guard bureau enhancement proposals

The advisability and feasibility of implementing the provisions of S. 2658 and H.R. 5200 of the 109th Congress, as introduced in the Senate and the House of Representatives, respectively, on April 26, 2006.

(2)

Chief of national guard bureau

As an alternative to implementation of the provisions of the bills specified in paragraph (1) that provide for the Chief of the National Guard Bureau to be a member of the Joint Chiefs of Staff and to hold the grade of general, the advisability and feasibility of providing for the Chief of the National Guard Bureau to hold the grade of general in the performance of the current duties of that office.

(3)

National Guard officers authority to command

The advisability and feasibility of implementing the provisions of section 544 of H.R. 5122 of the 109th Congress, as passed by the House of Representatives on May 11, 2006.

(4)

National guard equipment and funding requirements

The adequacy of the Department of Defense processes for defining the equipment and funding necessary for the National Guard to conduct both its responsibilities under title 10, United States Code, and its responsibilities under title 32, United States Code, including homeland defense and related homeland missions, including as part of such study—

(A)

consideration of the extent to which those processes should be developed taking into consideration the views of the Chief of the National Guard Bureau, as well as the views of the 54 Adjutant Generals and the views of the Chiefs of the Army National Guard and the Air Guard; and

(B)

whether there should be an improved means by which National Guard equipment requirements are validated by the Joint Chiefs of Staff and are considered for funding by the Secretaries of the Army and Air Force.

(b)

Priority review and report

(1)

Priority review

The Commission on the National Guard and Reserves shall carry out its study of the matters specified in paragraphs (1), (2), and (3) of subsection (a) on a priority basis, with a higher priority for matters under those paragraphs relating to the grade and functions of the Chief of the National Guard Bureau.

(2)

Report

In addition to the reports required under subsection (f) of the commission charter, the Commission shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives an interim report, not later than March 1, 2007, specifically on the matters covered by paragraph (1). In such report, the Commission shall set forth its findings and any recommendations it considers appropriate with respect to those matters.

(c)

Commission charter defined

For purposes of this section, the term commission charter means section 513 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1880).

C

Education and Training

I

Service Academies

531.

Expansion of service academy exchange programs with foreign military academies

(a)

United states military academy

(1)

Number of participants in exchange program

Subsection (b) of section 4345 of title 10, United States Code, is amended by striking 24 and inserting 100.

(2)

Costs and expenses

Subsection (c) of such section is amended—

(A)

by striking for the Academy in paragraph (3) and all that follows in that paragraph and inserting for the Academy and such additional funds as may be available to the Academy from a source other than appropriated funds to support cultural immersion, regional awareness, or foreign language training activities in connection with the exchange program.; and

(B)

by adding at the end the following new paragraph:

(4)

Expenditures in support of the exchange program from funds appropriated for the Academy may not exceed $1,000,000 during any fiscal year.

.

(b)

United states naval academy

(1)

Number of participants in exchange program

Subsection (b) of section 6957a of title 10, United States Code, is amended by striking 24 and inserting 100.

(2)

Costs and expenses

Subsection (c) of such section is amended—

(A)

by striking for the Academy in paragraph (3) and all that follows in that paragraph and inserting for the Academy and such additional funds as may be available to the Academy from a source other than appropriated funds to support cultural immersion, regional awareness, or foreign language training activities in connection with the exchange program.; and

(B)

by adding at the end the following new paragraph:

(4)

Expenditures in support of the exchange program from funds appropriated for the Naval Academy may not exceed $1,000,000 during any fiscal year.

.

(c)

United states air force academy

(1)

Number of participants in exchange program

Subsection (b) of section 9345 of title 10, United States Code, is amended by striking 24 and inserting 100.

(2)

Costs and expenses

Subsection (c) of such section is amended—

(A)

by striking for the Academy in paragraph (3) and all that follows in that paragraph and inserting for the Academy and such additional funds as may be available to the Academy from a source other than appropriated funds to support cultural immersion, regional awareness, or foreign language training activities in connection with the exchange program.; and

(B)

by adding at the end the following new paragraph:

(4)

Expenditures in support of the exchange program from funds appropriated for the Academy may not exceed $1,000,000 during any fiscal year.

.

(d)

Effective dates

The amendments made by subsection (a) shall take effect on the date of the enactment of this Act. The amendments made by subsections (b) and (c) shall take effect on October 1, 2008.

532.

Revision and clarification of requirements with respect to surveys and reports concerning sexual harassment and sexual violence at the service academies

(a)

Codification and revision to existing requirement for service academy policy on sexual harassment and sexual violence

(1)

United states military academy

Chapter 403 of title 10, United States Code, is amended by adding at the end the following new section:

4361.

Policy on sexual harassment and sexual violence

(a)

Required policy

Under guidance prescribed by the Secretary of Defense, the Secretary of the Army shall direct the Superintendent of the Academy to prescribe a policy on sexual harassment and sexual violence applicable to the cadets and other personnel of the Academy.

(b)

Matters To be specified in policy

The policy on sexual harassment and sexual violence prescribed under this section shall include specification of the following:

(1)

Programs to promote awareness of the incidence of rape, acquaintance rape, and other sexual offenses of a criminal nature that involve cadets or other Academy personnel.

(2)

Procedures that a cadet should follow in the case of an occurrence of sexual harassment or sexual violence, including—

(A)

if the cadet chooses to report an occurrence of sexual harassment or sexual violence, a specification of the person or persons to whom the alleged offense should be reported and the options for confidential reporting;

(B)

a specification of any other person whom the victim should contact; and

(C)

procedures on the preservation of evidence potentially necessary for proof of criminal sexual assault.

(3)

Procedures for disciplinary action in cases of alleged criminal sexual assault involving a cadet or other Academy personnel.

(4)

Any other sanction authorized to be imposed in a substantiated case of sexual harassment or sexual violence involving a cadet or other Academy personnel in rape, acquaintance rape, or any other criminal sexual offense, whether forcible or nonforcible.

(5)

Required training on the policy for all cadets and other Academy personnel, including the specific training required for personnel who process allegations of sexual harassment or sexual violence involving Academy personnel.

(c)

Annual assessment

(1)

The Secretary of Defense, through the Secretary of the Army, shall direct the Superintendent to conduct at the Academy during each Academy program year an assessment, to be administered by the Department of Defense, to determine the effectiveness of the policies, training, and procedures of the Academy with respect to sexual harassment and sexual violence involving Academy personnel.

(2)

For the assessment at the Academy under paragraph (1) with respect to an Academy program year that begins in an odd-numbered calendar year, the Secretary of the Army shall conduct a survey, to be administered by the Department of Defense, of Academy personnel—

(A)

to measure—

(i)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have been reported to officials of the Academy; and

(ii)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have not been reported to officials of the Academy; and

the incidence of sexual harassment and sexual violence involving Academy personnel; and

(iv)

any other issues relating to sexual harassment and sexual violence involving Academy personnel.

(d)

Annual report

(1)

The Secretary of the Army shall direct the Superintendent of the Academy to submit to the Secretary a report on sexual harassment and sexual violence involving cadets or other personnel at the Academy for each Academy program year.

(2)

Each report under paragraph (1) shall include, for the Academy program year covered by the report, the following:

(A)

The number of sexual assaults, rapes, and other sexual offenses involving cadets or other Academy personnel that have been reported to Academy officials during the program year and, of those reported cases, the number that have been substantiated.

(B)

The policies, procedures, and processes implemented by the Secretary of the Army and the leadership of the Academy in response to sexual harassment and sexual violence involving cadets or other Academy personnel during the program year.

(C)

A plan for the actions that are to be taken in the following Academy program year regarding prevention of and response to sexual harassment and sexual violence involving cadets or other Academy personnel.

(3)

Each report under paragraph (1) for an Academy program year that begins in an odd-numbered calendar year shall include the results of the survey conducted in that program year under subsection (c)(2).

(4)(A)

The Secretary of the Army shall transmit to the Secretary of Defense, and to the Board of Visitors of the Academy, each report received by the Secretary under this subsection, together with the Secretary’s comments on the report.

(B)

The Secretary of Defense shall transmit each such report, together with the Secretary’s comments on the report, to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

.

(2)

United states naval academy

Chapter 603 of title 10, United States Code, is amended by adding at the end the following new section:

6980.

Policy on sexual harassment and sexual violence

(a)

Required policy

Under guidance prescribed by the Secretary of Defense, the Secretary of the Navy shall direct the Superintendent of the Naval Academy to prescribe a policy on sexual harassment and sexual violence applicable to the midshipmen and other personnel of the Naval Academy.

(b)

Matters To be specified in policy

The policy on sexual harassment and sexual violence prescribed under this section shall include specification of the following:

(1)

Programs to promote awareness of the incidence of rape, acquaintance rape, and other sexual offenses of a criminal nature that involve midshipmen or other Academy personnel.

(2)

Procedures that a midshipman should follow in the case of an occurrence of sexual harassment or sexual violence, including—

(A)

if the midshipman chooses to report an occurrence of sexual harassment or sexual violence, a specification of the person or persons to whom the alleged offense should be reported and the options for confidential reporting;

(B)

a specification of any other person whom the victim should contact; and

(C)

procedures on the preservation of evidence potentially necessary for proof of criminal sexual assault.

(3)

Procedures for disciplinary action in cases of alleged criminal sexual assault involving a midshipman or other Academy personnel.

(4)

Any other sanction authorized to be imposed in a substantiated case of sexual harassment or sexual violence involving a midshipman or other Academy personnel in rape, acquaintance rape, or any other criminal sexual offense, whether forcible or nonforcible.

(5)

Required training on the policy for all midshipmen and other Academy personnel, including the specific training required for personnel who process allegations of sexual harassment or sexual violence involving Academy personnel.

(c)

Annual assessment

(1)

The Secretary of Defense, through the Secretary of the Navy, shall direct the Superintendent to conduct at the Academy during each Academy program year an assessment, to be administered by the Department of Defense, to determine the effectiveness of the policies, training, and procedures of the Academy with respect to sexual harassment and sexual violence involving Academy personnel.

(2)

For the assessment at the Academy under paragraph (1) with respect to an Academy program year that begins in an odd-numbered calendar year, the Secretary of the Navy shall conduct a survey, to be administered by the Department of Defense, of Academy personnel—

(A)

to measure—

(i)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have been reported to officials of the Academy; and

(ii)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have not been reported to officials of the Academy; and

the incidence of sexual harassment and sexual violence involving Academy personnel; and

(iv)

any other issues relating to sexual harassment and sexual violence involving Academy personnel.

(d)

Annual report

(1)

The Secretary of the Navy shall direct the Superintendent of the Naval Academy to submit to the Secretary a report on sexual harassment and sexual violence involving midshipmen or other personnel at the Academy for each Academy program year.

(2)

Each report under paragraph (1) shall include, for the Academy program year covered by the report, the following:

(A)

The number of sexual assaults, rapes, and other sexual offenses involving midshipmen or other Academy personnel that have been reported to Naval Academy officials during the program year and, of those reported cases, the number that have been substantiated.

(B)

The policies, procedures, and processes implemented by the Secretary of the Navy and the leadership of the Naval Academy in response to sexual harassment and sexual violence involving midshipmen or other Academy personnel during the program year.

(C)

A plan for the actions that are to be taken in the following Academy program year regarding prevention of and response to sexual harassment and sexual violence involving midshipmen or other Academy personnel.

(3)

Each report under paragraph (1) for an Academy program year that begins in an odd-numbered calendar year shall include the results of the survey conducted in that program year under subsection (c)(2).

(4)(A)

The Secretary of the Navy shall transmit to the Secretary of Defense, and to the Board of Visitors of the Naval Academy, each report received by the Secretary under this subsection, together with the Secretary’s comments on the report.

(B)

The Secretary of Defense shall transmit each such report, together with the Secretary’s comments on the report, to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

.

(3)

United states air force academy

Chapter 903 of title 10, United States Code, is amended by adding at the end the following new section:

9361.

Policy on sexual harassment and sexual violence

(a)

Required policy

Under guidance prescribed by the Secretary of Defense, the Secretary of the Air Force shall direct the Superintendent of the Academy to prescribe a policy on sexual harassment and sexual violence applicable to the cadets and other personnel of the Academy.

(b)

Matters to be specified in policy

The policy on sexual harassment and sexual violence prescribed under this section shall include specification of the following:

(1)

Programs to promote awareness of the incidence of rape, acquaintance rape, and other sexual offenses of a criminal nature that involve cadets or other Academy personnel.

(2)

Procedures that a cadet should follow in the case of an occurrence of sexual harassment or sexual violence, including—

(A)

if the cadet chooses to report an occurrence of sexual harassment or sexual violence, a specification of the person or persons to whom the alleged offense should be reported and the options for confidential reporting;

(B)

a specification of any other person whom the victim should contact; and

(C)

procedures on the preservation of evidence potentially necessary for proof of criminal sexual assault.

(3)

Procedures for disciplinary action in cases of alleged criminal sexual assault involving a cadet or other Academy personnel.

(4)

Any other sanction authorized to be imposed in a substantiated case of sexual harassment or sexual violence involving a cadet or other Academy personnel in rape, acquaintance rape, or any other criminal sexual offense, whether forcible or nonforcible.

(5)

Required training on the policy for all cadets and other Academy personnel, including the specific training required for personnel who process allegations of sexual harassment or sexual violence involving Academy personnel.

(c)

Annual assessment

(1)

The Secretary of Defense, through the Secretary of the Air Force, shall direct the Superintendent to conduct at the Academy during each Academy program year an assessment, to be administered by the Department of Defense, to determine the effectiveness of the policies, training, and procedures of the Academy with respect to sexual harassment and sexual violence involving Academy personnel.

(2)

For the assessment at the Academy under paragraph (1) with respect to an Academy program year that begins in an odd-numbered calendar year, the Secretary of the Air Force shall conduct a survey, to be administered by the Department of Defense, of Academy personnel—

(A)

to measure—

(i)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have been reported to officials of the Academy; and

(ii)

the incidence, during that program year, of sexual harassment and sexual violence events, on or off the Academy reservation, that have not been reported to officials of the Academy; and

the incidence of sexual harassment and sexual violence involving Academy personnel; and

(iv)

any other issues relating to sexual harassment and sexual violence involving Academy personnel.

(d)

Annual report

(1)

The Secretary of the Air Force shall direct the Superintendent of the Academy to submit to the Secretary a report on sexual harassment and sexual violence involving cadets or other personnel at the Academy for each Academy program year.

(2)

Each report under paragraph (1) shall include, for the Academy program year covered by the report, the following:

(A)

The number of sexual assaults, rapes, and other sexual offenses involving cadets or other Academy personnel that have been reported to Academy officials during the program year and, of those reported cases, the number that have been substantiated.

(B)

The policies, procedures, and processes implemented by the Secretary of the Air Force and the leadership of the Academy in response to sexual harassment and sexual violence involving cadets or other Academy personnel during the program year.

(C)

A plan for the actions that are to be taken in the following Academy program year regarding prevention of and response to sexual harassment and sexual violence involving cadets or other Academy personnel.

(3)

Each report under paragraph (1) for an Academy program year that begins in an odd-numbered calendar year shall include the results of the survey conducted in that program year under subsection (c)(2).

(4)(A)

The Secretary of the Air Force shall transmit to the Secretary of Defense, and to the Board of Visitors of the Academy, each report received by the Secretary under this subsection, together with the Secretary’s comments on the report.

(B)

The Secretary of Defense shall transmit each such report, together with the Secretary’s comments on the report, to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

.

(b)

Further information from cadets and midshipmen at the service academies on sexual assault and sexual harassment issues

(1)

Use of focus groups for years when survey not required

In any year in which the Secretary of a military department is not required by law to conduct a survey at the service academy under the Secretary’s jurisdiction on matters relating to sexual assault and sexual harassment issues at that Academy, the Secretary shall provide for focus groups to be conducted at that Academy for the purposes of ascertaining information relating to sexual assault and sexual harassment issues at that Academy.

(2)

Inclusion in report

Information ascertained from a focus group conducted pursuant to paragraph (1) shall be included in the Secretary’s annual report to Congress on sexual harassment and sexual violence at the service academies.

(3)

Service academies

For purposes of this subsection, the term service academy means the following:

The table of sections at the beginning of chapter 403 of title 10, United States Code, is amended by adding at the end the following new item:

4361. Policy on sexual harassment and sexual violence.

.

(2)

The table of sections at the beginning of chapter 603 of such title is amended by adding at the end the following new item:

6980. Policy on sexual harassment and sexual violence.

.

(3)

The table of sections at the beginning of chapter 903 of such title is amended by adding at the end the following new item:

9361. Policy on sexual harassment and sexual violence.

.

533.

Department of Defense policy on service academy and ROTC graduates seeking to participate in professional sports before completion of their active-duty service obligations

(a)

Policy required

(1)

In general

Not later than July 1, 2007, the Secretary of Defense shall prescribe the policy of the Department of Defense on—

(A)

whether to authorize graduates of the service academies and the Reserve Officers’ Training Corps to participate in professional sports before the completion of their obligations for service on active duty as commissioned officers; and

(B)

if so, the obligations for service on active duty as commissioned officers of such graduates who participate in professional sports before the satisfaction of the obligations referred to in subparagraph (A).

(2)

Review of current policies

In prescribing the policy, the Secretary shall review current policies, practices, and regulations of the military departments on the obligations for service on active duty as commissioned officers of graduates of the service academies and the Reserve Officers’ Training Corps, including policies on authorized leaves of absence and policies under excess leave programs.

(3)

Considerations

In prescribing the policy, the Secretary shall take into account the following:

(A)

The compatibility of participation in professional sports (including training for professional sports) with service on active duty in the Armed Forces or as a member of a reserve component of the Armed Forces.

(B)

The benefits for the Armed Forces of waiving obligations for service on active duty for cadets, midshipmen, and commissioned officers in order to permit such individuals to participate in professional sports.

(C)

The manner in which the military departments have resolved issues relating to the participation of personnel in professional sports, including the extent of and any reasons for, differences in the resolution of such issues by such departments.

(D)

The recoupment of the costs of education provided by the service academies or under the Reserve Officers’ Training Corps program if graduates of the service academies or the Reserve Officers’ Training Corps, as the case may be, do not complete the period of obligated service to which they have agreed by reason of participation in professional sports.

(E)

Any other matters that the Secretary considers appropriate.

(b)

Elements of policy

The policy prescribed under subsection (a) shall address the following matters:

(1)

The eligibility of graduates of the service academies and the Reserve Officers’ Training Corps for a reduction in the obligated length of service on active duty as a commissioned officer otherwise required of such graduates on the basis of their participation in professional sports.

(2)

Criteria for the treatment of an individual as a participant or potential participant in professional sports.

(3)

The effect on obligations for service on active duty as a commissioned officer of any unsatisfied obligations under prior enlistment contracts or other forms of advanced education assistance.

(4)

Any authorized variations in the policy that are warranted by the distinctive requirements of a particular Armed Force.

(5)

The eligibility of individuals for medical discharge or disability benefits as a result of injuries incurred while participating in professional sports.

(6)

A prospective effective date for the policy and for the application of the policy to individuals serving on such effective date as a commissioned officer, cadet, or midshipman.

(c)

Application of policy to armed forces

Not later than December 1, 2007, the Secretary of each military department shall prescribe regulations, or modify current regulations, in order to implement the policy prescribed by the Secretary of Defense under subsection (a) with respect to the Armed Forces under the jurisdiction of such Secretary.

II

Scholarship and Financial Assistance Programs

535.

Authority to permit members who participate in the guaranteed reserve forces duty scholarship program to participate in the health professions scholarship program and serve on active duty

Paragraph (3) of section 2107a(b) of title 10, United States Code, is amended—

(1)

by inserting or a cadet or former cadet under this section who signs an agreement under section 2122 of this title, after military junior college,; and

(2)

by inserting , or former cadet, after consent of the cadet and after submitted by the cadet.

536.

Detail of commissioned officers as students at medical schools

(a)

In general

Chapter 101 of title 10, United States Code, is amended by inserting after section 2004 the following new section:

2004a.

Detail of commissioned officers as students at medical schools

(a)

Detail authorized

The Secretary of each military department may detail commissioned officers of the armed forces as students at accredited medical schools or schools of osteopathy located in the United States for a period of training leading to the degree of doctor of medicine. No more than 25 officers from each military department may commence such training in any single fiscal year.

(b)

Eligibility for detail

To be eligible for detail under subsection (a), an officer must be a citizen of the United States and must—

(1)

have served on active duty for a period of not less than two years nor more than six years and be in the pay grade 0–3 or below as of the time the training is to begin; and

(2)

sign an agreement that unless sooner separated the officer will—

(A)

complete the educational course of medical training;

(B)

accept transfer or detail as a medical officer within the military department concerned when the officer’s training is completed; and

(C)

agree to serve, following completion of the officer’s training, on active duty (or on active duty and in the Selected Reserve) for a period as specified pursuant to subsection (c).

(c)

Service obligation

An agreement under subsection (c) shall provide that the officer shall serve on active duty for two years for each year or part thereof of the officer’s medical training under subsection (a), except that the agreement may authorize the officer to serve a portion of the officer’s service obligation on active duty and to complete the service obligation that remains upon separation from active duty in the Selected Reserve, in which case the officer shall serve three years in the Selected Reserve for each year or part thereof of the officer’s medical training under subsection (a) for any service obligation that was not completed before separation from active duty.

(d)

Selection of officers for detail

Officers detailed for medical training under subsection (a) shall be selected on a competitive basis by the Secretary of the military department concerned.

(e)

Relation of service obligations to other service obligations

Any service obligation incurred by an officer under an agreement entered into under subsection (b) shall be in addition to any service obligation incurred by the officer under any other provision of law or agreement.

(f)

Expenses

Expenses incident to the detail of officers under this section shall be paid from any funds appropriated for the military department concerned.

(g)

Failure to complete program

(1)

An officer who is dropped from a program of medical training to which detailed under subsection (a) for deficiency in conduct or studies, or for other reasons, may be required to perform active duty in an appropriate military capacity in accordance with the active duty obligation imposed on the officer under regulations issued by the Secretary of Defense for purposes of this section.

(2)

In no case shall an officer be required to serve on active duty under paragraph (1) for any period in excess of one year for each year or part thereof the officer participated in the program.

(h)

Limitation on details

No agreement detailing an officer of the armed forces to an accredited medical school or school of osteopathy may be entered into during any period in which the President is authorized by law to induct persons into the armed forces involuntarily. Nothing in this subsection shall affect any agreement entered into during any period when the President is not authorized by law to so induct persons into the armed forces

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2004 the following new item:

2004a. Detail of commissioned officers as students at medical schools.